Neptune Logitek, a company focused on logistics solutions, is preparing to launch its Initial Public Offering (IPO) worth Rs 47 crore. This move marks the company's entry into the SME capital market, where investor interest has become more selective lately.
The IPO will be open for subscription until December 17 and is scheduled to list on the BSE SME platform on December 22. It's a fixed-price issue of 37 lakh equity shares, with no offer-for-sale component. The issue price is set at Rs 126 per share.
Retail investors need to apply for a minimum of 2,000 shares, which translates to an investment of Rs 2.52 lakh. High-net-worth investors must bid for at least 3,000 shares, worth Rs 3.78 lakh. About 95% of the net issue is divided between retail and non-institutional investors, with the rest reserved for the market maker.
Neptune Logitek provides integrated logistics solutions, including freight forwarding, customs clearance, and transportation services. The company operates mainly on its own fleet and has in-house maintenance facilities. It uses GPS-enabled fleet management systems to improve efficiency.
As of March 2025, Neptune Logitek had 199 fleets and nine branch offices across India. The logistics sector has seen steady growth due to increasing manufacturing activity, infrastructure spending, and the expansion of e-commerce.
Neptune Logitek reported a 48% revenue growth in FY25, with profit after tax rising to Rs 9.16 crore. The company's EBITDA stood at Rs 21.38 crore in FY25, up from Rs 9.74 crore in FY24.
The IPO proceeds will be used for capital expenditure, repayment of borrowings, and general corporate purposes. The company aims to expand its owned fleet to improve service reliability and margins.
The absence of a Grey Market Premium (GMP) reflects cautious investor sentiment. The company's performance on listing day will depend on broader market conditions and the depth of subscription.
Investors have become more valuation-conscious in the SME segment, making the IPO's success dependent on various market factors.
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