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• This is the 2nd RI from the company since October 2021.
• The company is providing integrated logistics services on Pan-India basis.
• It is operating in a highly competitive and fragmented segment.
• The issue appears greedily priced if we track its last 52 week's market trends.
• Well-informed investors may park moderate funds for long term.
ABOUT COMPANY:
Patel Integrated Logistics Ltd. (PILL) which was originally incorporated as Patel Roadways Pvt. Ltd. has attained its current status over the period with many ups and down. Currently it is engaged in the business of providing logistics services and unified solutions focusing on air transportation and surface transportation as well as ancillary services such as courier services and warehousing. It operates business through a Pan-India network comprising 93 branch offices and presence across India covering major cities/towns/airports.
The company is continuing its strategy of establishing new warehouses, improving its operational efficiencies and widening its customer base into new geographies with a focus on technology. As of March 31, 2024, it had 261 employees on its payroll.
ISSUE DETAILS:
The company is coming out with its 2nd Rights Issue (RI) of 5000000 equity shares of Rs. 10 each at a fixed price of Rs. 18.00 per share to mobilize Rs. 9.00 cr. The RI opens for subscription on September 19, 2024, and will close on October 01, 2024. The company is offering RI in the ratio of 8 for 103 to its eligible stakeholders as of the record date of September 06, 2024.The full amount is to be paid on application for number of shares applied. Post allotment, shares will be listed on BSE, NSE and CSE. The company is spending Rs. 0.50 cr. for this RI process, and from the net proceeds, it will utilize Rs. 6.25 cr. for repayment of certain borrowings, and Rs. 2.25 cr. for general corporate purposes.
The issue is self-managed by the company and Bigshare Services Pvt. Ltd. is the registrar to the issue.
Post-RI, company's current paid-up equity capital of Rs. 64.59 cr. will stand enhanced to Rs. 69.59 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 125.25 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has posted a total income/net profit of Rs. 280.29 cr. / Rs. 4.90 cr. (FY23), Rs. 292.52 cr. / Rs. 5.54 cr. (FY24).
DIVIDEND POLICY:
The offer document is silent on its dividend policy. It will adopt a prudent dividend policy post listings of RI shares based on its financial performance and future prospects.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 526381 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 23.91 on September 05, 2024, and opened on an ex-right basis at Rs. 23.42 on September 06, 2024. Since then, it has marked a high/low of Rs. 26.36 / Rs. 21.37. The scrip last closed at Rs. 25.64 as of September 18, 024. For the last 52 weeks' it has posted a high/low of Rs. 28.87 / Rs. 12.86.
The promoters' holding has declined to 36.42% for the quarter ended June 30, 2024, against 36.85% for the previous two quarters ended on March 31, 2024. The counter is well managed by the vested interest to keep it above the RI price, to tempt investors.
Review By Dilip Davda on September 18, 2024
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on the information published here. My reviews do not cover GMP market and operators game plans. Any reader taking decisions based on any information published here does so entirely at their own risk. Investors should bear in mind that any investment in stock markets is subject to unpredictable market-related risks. The above information is based on RHP and other documents available as of date coupled with market perception. The author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
The Patel Integrated Logistics Rights Issue 2024 Analysis helps you to understand about the company, offer detail, valuation, capital structure and financial performance. Our SEBI registered Rights Issue Analysts tells you if Patel Integrated Logistics Rights Issue 2024 worth investing. The Patel Integrated Logistics Rights Issue 2024 Note sets the Rights Issue expectations in systematic way which tells you if Patel Integrated Logistics Rights Issue 2024 good to buy (good or bad / yes or no). The Rights Issue Forecast tells you weather to invest in Patel Integrated Logistics Rights Issue 2024 by providing Rights Issue recommendations i.e. subscribe, avoid and neutral.
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