PDP Shipping & Projects Ltd. (PSPL), a logistics and transport services provider, is set to launch its maiden Initial Public Offering (IPO) on March 10, 2025. The IPO, priced at INR 135 per share, aims to raise INR 12.65 crore, with shares slated for listing on the BSE SME exchange. The issue will close on March 12, 2025.
IPO Details & Fund Utilization
The company is offering 937,000 equity shares, constituting 31.50% of its post-IPO paid-up capital. Investors must apply for a minimum of 1,000 shares. Of the INR 12.65 crore proceeds, INR 10 crore is allocated for working capital, while INR 0.80 crore will be used for general corporate purposes. The IPO expenses amount to INR 1.85 crore. Sun Capital Advisory Services Pvt. Ltd. is the sole lead manager, with KFin Technologies Ltd. as the registrar and Rikhav Securities Ltd. as the market maker.
PSPL operates on an asset-light model, relying on third-party transport operators and logistics networks. The company provides end-to-end freight services, including sea and air transport, customs clearance, and warehousing. Licensed as a Multi Modal Transport Operator (MTO) and an Authorized Economic Operator (AEO), it simplifies logistics for clients by offering a single-window solution.
Financial Performance & Valuation
Despite a presence in the competitive logistics sector, PSPL’s financials paint a mixed picture. The company’s revenue declined from INR 28.73 crore in FY22 to INR 20.58 crore in FY24, yet net profit rose from INR 1.91 crore to INR 2.31 crore over the same period. In the first eight months of FY25, the company reported a net profit of INR 1.57 crore on revenue of INR 13.78 crore.
The IPO is priced at a P/E ratio of 17.05x based on FY25 projected earnings, and at 17.35x based on FY24 figures. With a post-IPO NAV of INR 67.46 per share, the issue appears expensive. Compared to listed peers like Marinetrans India (P/E: 151) and S J Logistics (P/E: 17.8), PSPL’s valuation lacks strong comparability.
Investment Outlook
While PSPL has demonstrated profit growth, its declining revenues and inconsistent earnings raise concerns. The logistics sector is highly fragmented, and the company’s small equity capital may delay its transition to the mainboard. Given the aggressive pricing and business risks, investors may find better opportunities elsewhere. Caution is advised for those considering this high-risk, low-return proposition.
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