According to the Red Herring Prospectus, the company provides logistics solutions to businesses, with a focus on surface transportation of items weighing between 1 and 250 MT. The firm is a products transport agency that provides point-to-point services, which means that items are loaded at the client’s location and transported to the delivery place specified by the customer. They also offer general transportation services, project logistics, and over-dimensional/overweight freight moves to its customers in India.
The company’s Contract Logistics department primarily services business-to-business (B2B) clients that need to transfer significant volumes of products between sites in India and neighboring countries such as Nepal, Bhutan, etc.
The company’s listed peers include VRL Logistics Ltd (P/E of 29.73), AVG Logistics Ltd (P/E of 79.61), and Ritco Logistics Ltd (P/E of 27.08).
Between March 31, 2022 and March 31, 2023, Premier Roadlines Limited’s profit after tax (PAT) grew by 84.89%, while revenue increased by 38.48%.
The shares for the Premier Roadlines IPO are expected to be allocated on Wednesday, May 15, and credited to the allottees’ demat accounts on Thursday, May 16. The refund procedure will start on Thursday itself. Premier Roadlines shares are expected to be launched on the NSE SME on Friday, May 17.
Also Read: Premier Roadlines IPO to open May 10, price band set at ₹63-67 per share
Premier Roadlines IPO subscription status
Premier Roadlines IPO subscription status is 6.92 times, on day 2, so far.
The retail portion was subscribed 10.66 times, and NII portion was booked 4.74 times. Qualified institutions buyers (QIBs) were subscribed 2.18 times.
The company has received bids for 2,77,12,000 shares against 40,06,000 shares on offer, at 17:11 IST, according to data on chittorgarh.com.
Premier Roadlines IPO subscription status was 1.32 times.
Premier Roadlines IPO details
Premier Roadlines IPO, which is worth about ₹40.36 crore, consists of a fresh issue of 6,024,000 equity shares with a face value of ₹10. There is no offer-for-sale component.
The firm plans to use the issue’s proceeds for the following purposes: prepayment or repayment of some of the company’s outstanding debt, either in full or in part; purchase of vehicle for commercial purposes, satisfaction of working cash needs, and general corporate reasons.
15% of the net issue for the NII sector, 35% for retail investors, and 50% for QIB are included in the IPO.
Retail investors need to contribute a minimum of ₹1.34 lakh considering the minimum lot size for an application is 2,000 shares. For HNIs, the minimum bidding size is two lots, or 4,000 shares, for a total investment of ₹2.68 lakh at the upper price band.
Maashitla Securities Private Limited is the registrar for the Premier Roadlines IPO, while Hem Securities Limited is the book running lead manager.
Also Read: TGIF Agribusiness IPO allotment to be out today; latest GMP, steps to check status
Premier Roadlines IPO GMP today
Premier Roadlines IPO GMP is +30. This indicates Premier Roadlines share price were trading at a premium of ₹30 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, Premier Roadlines IPO expected listing price was indicated at ₹97 apiece, which is 44.78% higher than the IPO price of ₹67.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 13 May 2024, 05:24 PM IST
