Paradeep Parivahan Limited IPO: Subscription Details, Price Range, And Key Dates

Paradeep Parivahan Limited, a prominent logistics company, is gearing up for its stock market debut with an Initial Public Offering (IPO) worth ₹44.86 crores. This fresh issue consists of 45.78 lakh shares, and the subscription window is open from March 17 to March 19, 2025. Investors will be able to track its journey as the company prepares to list on the BSE SME platform on Monday, March 24, 2025.

With a lot size of 1,200 shares, the IPO offers equity shares with a face value of ₹10 each, priced between ₹93 and ₹98 per share. The minimum investment required to participate is ₹1,11,600 for retail investors and ₹2,35,200 for High-Net-Worth Individuals (HNIs) for two lots.

Paradeep Parivahan IPO Details

Paradeep Parivahan Limited's IPO is a fundraise worth ₹44.86 crores, consisting entirely of a fresh issue. The issue includes 45.78 lakh shares, with 5,97,600 shares reserved for the market maker, Share India Securities Limited. Qualified Institutional Buyers are being offered no more than 50% of the net issue, retail investors are being offered no less than 35%, and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered no less than 15% of the net issue. The IPO will be available for subscription from March 17, 2025, to March 19, 2025, providing investors with a chance to stake a claim in the growing logistics sector.

Paradeep Parivahan IPO Date- March 17, 2025 - March 19, 2025

Price band- ₹93 to ₹98 per share

Face value- ₹10 per share

Lot size- 1,200 shares

Issue type- Book Built Issue IPO

Fresh issue size- 45,78,000 shares amounting to ₹44.86 crores

Total issue size- 45,78,000 shares amounting to ₹44.86 crores

Listing at BSE SME

Market maker portion- 5,97,600 shares - Share India Securities Ltd

Shareholding post-issue- 1,13,40,000 shares

Shareholding pre-issue- 1,59,18,000 shares

Paradeep Parivahan IPO Timeline

Allotment for the Paradeep Parivahan Limited IPO is set for March 24, 2025, with subscriptions opening on March 17, 2025, and closing on March 19, 2025.

IPO open date- March 17, 2025 (Monday)

IPO close date- March 19, 2025 (Wednesday)

Basis of allotment- March 20, 2025 (Thursday)

Initiation of refunds- March 21, 2025 (Friday)

Credit of shares to Demat account - March 21, 2025 (Friday)

Listing date on BSE SME- March 24, 2025 (Monday)

Cut-off time for UPI mandate confirmation- 5 PM on March 19, 2025 (Wednesday)

Paradeep Parivahan IPO Review

Established in 2000, Paradeep Parivahan Limited is a major port service provider specializing in logistics, ship husbandry, and stevedoring. The company operates primarily at Paradip Port, Odisha, and has expanded to multiple locations, including Gopalpur, Haldia, Visakhapatnam, Jajpur, Joda & Barbil, Chandikhol, Cuttack, and Talcher. The company caters to industries like cargo shipping, cement, steel, and railway siding.

Paradeep Parivahan Limited offers a wide range of services such as cargo handling, ship husbandry, stevedoring, dredging, custom house clearance, and transportation. The company is one of the largest fleet owners on India's east coast, providing end-to-end logistics solutions. In addition, it is engaged in manufacturing agricultural chemicals, particularly phosphatic fertilizers like diammonium phosphate. As of March 2025, the company employs 11,124 individuals.

The company aims to use the net proceeds from its IPO primarily to meet working capital requirements, with an estimated allocation of ₹350 million. Additional funds will be used for general corporate purposes to support operational growth, efficiency, and expansion plans.

Paradeep Parivahan IPO Financials

Key performance indicators for Paradeep Parivahan Limited, as of March 31, 2024, reflect the company's solid financial health, including a Return on Equity (RoE) of 33.62%, Return on Capital Employed (ROCE) of 26.61%, and a Debt-to-Equity ratio of 0.80. Other key metrics include a Price to Book Value of 2.03 and a Profit After Tax (PAT) Margin of 7.10%. The company's market capitalization stands at ₹156 crores.Pre-IPO EPS is ₹13.25, while Post-IPO EPS will be ₹6.50. Similarly, the Pre-IPO P/E ratio stands at 7.4, and it will rise to 15.07 post-IPO.

Period Ended July 31, 2024 March 31, 2024 March 31, 2023 March 31, 2022

Revenue 137.94 211.62 202.81 188.69

Assets 164.35 138.09 116.78 118.23

Net Worth 59.89 54.71 34.65 28.1

Profit After Tax 5.18 15.02 6.56 2.84

Reserves & Surplus 48.55 43.37 29.4 22.85

Total Borrowing 46.21 35.09 36.11 47.17

Amount in ₹ crores

Paradeep Parivahan IPO Strengths

With over two decades of industry experience, Paradeep Parivahan Limited has developed significant expertise in port operations and cargo handling. Its extensive network spans major ports and industrial regions across Eastern India, backed by modern infrastructure, including handling equipment, a robust transport fleet, and skilled manpower. The company is committed to offering seamless supply chain solutions with a strong focus on quality and cost-effectiveness.

Paradeep Parivahan IPO Weaknesses

Despite its industry success, Paradeep Parivahan Limited faces business risks that could affect its operations and financial performance. These risks include ongoing legal proceedings involving the company, its promoters, and directors, as well as the lack of ownership of its operational properties, which may pose a risk if lease agreements are disrupted. The company also requires significant working capital, and delays in securing funds could impact financial stability.

A substantial portion of its revenue is generated from the top 10 customers, making the company vulnerable to revenue fluctuations if any of these clients are lost. The company has also engaged in related-party transactions, which could involve potential conflicts of interest. Furthermore, the company's restated financial statements were audited by a peer-reviewed chartered accountant rather than its statutory auditor. Competitive pressures from larger industry players and the risk of promoters acquiring shares at a lower cost than the floor price further contribute to the operational and financial risks.

Should You Invest in the Paradeep Parivahan IPO?

Investing early in Paradeep Parivahan Limited's IPO offers an opportunity to participate in the company's growth within the logistics sector. However, investors should carefully evaluate the company's operational history, financial health, industry trends, and expansion plans before making a decision. It's essential to align the investment with personal financial goals and risk tolerance. Reviewing the offer document and seeking professional financial advice can help make an informed decision.

FAQs

What is the Paradeep Parivahan Limited IPO?

The Paradeep Parivahan Limited IPO is a BSE SME offering consisting of 45.78 lakh equity shares with a face value of ₹10 each, aiming to raise ₹44.86 crore. The pricing range is established between ₹93 to ₹98 per share, with a minimum order size of 1,200 shares. The subscription period runs from March 17, 2025 to March 19, 2025. Share India Capital Services Private Limited is the book-running lead manager, Bigshare Services Pvt Ltd is the registrar, and Share India Securities Limited serves as the market maker.

When will the Paradeep Parivahan IPO open?

The Paradeep Parivahan Limited IPO will open for subscription on March 17, 2025, and close on March 19, 2025.

When is the Paradeep Parivahan IPO listing date?

The tentative listing date for the Paradeep Parivahan Limited IPO is March 24, 2025.