Premier Roadlines IPO price band has been fixed in the range of ₹63 to ₹67 per equity share of face value of ₹10 each. Premier Roadlines IPO will open for subscription on Friday, May 10, and close on Tuesday, May 14. The lot size for the Premier Roadlines IPO is 2,000 shares. A minimum of 2,000 equity shares must be applied for, and after that, the shares must be applied for in multiples of 2,000.
The company offers logistical solutions to enterprises, specialising in surface transportation of commodities weighing between 1 and 250 MT, according to the Red Herring Prospectus (RHP). The company is a goods transport agency that offers point-to-point services, meaning that the goods are loaded from the customer’s premises and delivered to the delivery point that the customer specifies. They also provide general transport services, project logistics, and over-dimensional/overweight cargo movements to their customers throughout India.
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Under its Contract Logistics section, the company primarily serves business-to-business (B2B) clients that need to move large amounts of their goods between locations in India and other nearby nations like Nepal, Bhutan, etc.
The company’s listed peer’s are VRL Logistics Ltd (with a P/E of 29.73), AVG Logistics Ltd (with a P/E of 79.61), and Ritco Logistics Ltd (with a P/E of 27.08).
Between March 31, 2022, and March 31, 2023, Premier Roadlines Limited’s profit after tax (PAT) climbed by 84.89%, while its revenue increased by 38.48%.
It is expected that shares for the Premier Roadlines IPO will be allocated on Wednesday, May 15, and that the shares will be credited to the demat account of the allottees on Thursday, May 16. The refund process will commence on Thursday itself. Premier Roadlines shares are likely to be listed on NSE SME on Friday, May 17.
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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; acquisition of a car for business use, 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.
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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.
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