New Delhi, March 24 (H.S.): Paradeep Transportation, a company providing cargo handling, ship husbandry, custom house clearance, and transportation services, has significantly disappointed its IPO investors by making a weak entry into the stock market today. The shares of the company were issued at a price of ₹98 under the IPO. Today, the listing of these shares on the BSE’s SME platform occurred at a level of ₹78.40, reflecting a 20 percent discount. Due to selling pressure after the listing, the shares quickly fell to the lower circuit level of ₹74.48. However, buying resumed again around 11 AM, and the shares broke the lower circuit and started trading. After the initial 2 hours of trading, at 11:15 AM, the company’s shares were trading at ₹80.33, down ₹17.67 or 18.03 percent.
Paradeep Transportation’s IPO of ₹44.86 crore was open for subscription from March 17 to 19. This IPO received an average response from investors, leading to an overall subscription of 1.78 times. The qualified institutional buyers (QIB) reserved portion was subscribed 1.33 times. Similarly, the non-institutional investors (NII) reserved portion saw a subscription of 2.65 times. Additionally, the retail investors’ reserved portion was subscribed 1.66 times. Under this IPO, 45.78 lakh new shares with a face value of ₹10 were issued. The funds raised through the IPO will be used to meet the company’s working capital needs and for general corporate purposes.
Regarding the company’s financial position, according to claims made in the prospectus, its financial health has been consistently strong. In the fiscal year 2021-22, the company reported a net profit of ₹2.48 crore, which increased to ₹6.56 crore in the next fiscal year 2022-23 and reached ₹15.02 crore in 2023-24. During this period, the company’s revenue grew at a compounded annual growth rate of more than 5.90 percent, reaching ₹211.62 crore. In the first half of the current fiscal year, from April to September 2024, the company has recorded a net profit of ₹5.18 crore. Similarly, during this period, the company has achieved a revenue of ₹137.94 crore.
Hindusthan Samachar / Jun Sarkar
