Brace Port Logistics Limited is a company that specializes in providing ocean cargo logistics services to clients. Brace Port Logistics IPO intends to raise Rs 24.41 crores. The issue is entirely a fresh issue of 30.51 lakh shares.
IPO opens
August 19, 2024
IPO Closes
August 21, 2024
IPO Size (Rs.)
₹24.41 Cr
Breakup
Fresh issue only
Face Value:
₹ 10
IPO Price in Rs :
₹76 to ₹80 per share
Minimum Lot
1600 Shares
Listing At
NSE SME
QIB
~50 %
NII Quota
~15%
Retail Quota
~35%
Lead Manager
Holani Consultants Private Limited
Registrar
Link Intime
Market maker
Holani Consultants.
Company is a service-based logistics company primarily engaged in the business of providing Ocean cargo logistics services to clients operating in the various sectors of the economy.
They also provide various value-added services like Air Freight, Warehousing facilities, special cargo services and custom clearance services.
Company along with our group companies and holding company have extensive network across the globe.
They provide services at worldwide level where they cater for clients across the globe and even provide cross-border shipment facilities as well.
company is promoted by corporate promoter M/s. Skyways Air Services Private Limited which is the flagship company of Skyways Group and our company is the subsidiary company of Skyways Air Services Private Limited. The Skyways group is engaged in all sorts of logistics solutions. The group has presence in countries Germany, Vietnam, UAE, Hongkong and Bangladesh
Financials: Brace Port Logistics IPO
Particulars / Rs. Lacs
March 31, 2024
March 31, 2023
March 31, 2022
Revenue from Services
5,500.43
7,045.35
5,413.79
Profit / (Loss) After Tax
489.13
618.09
322.39
Equity Share Capital
825
75
75
Net Worth
1,377.18
888.05
419.96
Total Borrowings (3)
48.97
59.1
–
Post issue Share Capital
1130
FV
10.0
IPO price
80.0
EPS Fy23
5.5
PE Fy23
14.6
EPS Fy24
4.3
PE Fy24
18.5
Market cap in Lacs
9,040
Market cap / Sales
1.64
Anchors: Brace Port Logistics IPO
Brace Port Logistics IPO: Salient Points
The third-party logistics market in India is expected to continue to grow in line with its historical trajectory, due to strong demand and supply side drivers, such as the expected growth in the Indian economy, increasing urbanization, increased consumerism due to higher per capita income, favorable changes, and incentives from the government for infrastructure investment.
Started by professional with earlier experience in Allcargo Logistics.
Net proceeds use: Mainly for working capital.
Company is a service-based logistics company primarily engaged in the business of providing Ocean cargo logistics & Air fright services to clients operating in the various sectors of the economy.
They provide services across the globe,
Continents
2023-24
2022-23
2021-22
Air Freight
%age of totalrevenue
Ocean Freight
%age of totalrevenue
Air Freight
%age of totalrevenue
Ocean Freight
%age of totalrevenue
Air Freight
%age of totalrevenue
Ocean Freight
%age of totalrevenue
Europe
789.19
14.35%
1,008.11
18.33%
66.10
0.94%
1,294.76
18.37%
78.38
1.45%
1,008.11
18.62%
The Americas
1,288.34
23.42%
665.10
12.09%
269.88
3.84%
2,426.22
34.49%
81.17
1.50%
2,445.82
45.18%
Africa
10.38
0.19%
126.82
2.31%
3.66
0.05%
145.02
2.06%
4.21
0.08%
314.44
5.81%
Asia
779.64
14.17%
651.17
11.84%
82.82
1.18%
2,690.14
38.13%
451.35
8.34%
959.05
17.71%
Oceania
20.70
0.38%
160.98
2.93%
13.55
0.19%
53.21
0.76%
2.42
0.04%
68.83
1.27%
Total
2,888.24
52.51%
2,612.19
47.49%
436.01
6.19%
6,609.35
93.80%
617.54
11.40%
4,796.26
88.59%
Total Revenue
5,500.43
7,045.35
5,413.79
Revenue breakup from domestic and export services
Particulars
FY 2023-24
FY 2022-23
FY 2021-22
Amount
%
Amount
%
Amount
%
Domestic Services
2,786.04
50.65%
3,228.66
45.83%
2,363.86
43.66%
Export Services
2,714.39
49.35%
3,816.69
54.17%
3,049.93
56.34%
Total Revenue
5,500.43
100.00%
7,045.35
100.00%
5413.79
100.00%
Peers
Company/ FY24 figures
CMP Rs.
Revenue Rs. Cr
Net Profit Rs. Cr
NPM (%)
PE
Macp/sales
RONW %
Brace Port Logistics Limited*
80.0
55.00
4.8913
8.9%
18.5
1.64
35.52%
Tiger Logistics (India) Limited
42.2
240.26
13
5.4%
28.6
1.49
11.70%
AVG Logistics Limited
472
479.76
33
6.9%
26.4
1.28
16.35%
The total number of customers of the company as on March 31, 2024 were 485.
Ford was thy customer for its 1st order of 609 Cars. Brace Port handled 609 Cars in a single lot, and successfully delivered the entire consignment safely & well in time from China to Thailand and Kampuchea.
This type of order comes under Roro Movement of Consignments (Roll In Roll Out). RORO movement provides a convenient and cost-effective solution for transporting wheeled cargo, simplifying the logistics process, and ensuring efficient transportation of vehicles from one destination to another. This movement is widely used in the automotive industry, where manufacturers and distributors utilize these services to move their products efficiently and economically.
Brace Port also executed the movement of Daimler Fuzo Trucks from JAPAN for the same customer.
customer base spans across many sectors including retail and consumer goods, Healthcare, Manufacturing, Automotive, Food and Beverages, Energy and Utilities etc.. They serve including Indian Corporate Groups and Multi- National Corporations.
.PE 2024: 18.5x
I intend to apply in Brace Port Logistics IPOsubject to availability of funds. Logistics players have reported mixed numbers. Applying considering current market sentiment and Lead manger record as well as some strengths of company.
GMP as reported on social media has been Rs.115 (143.8%).
Holani Consultants is the lead book running manager as well as the market maker. The last few IPOs lead managed by them have given decent return to the investors. These include names like Rajputana Industries Limited, Signoria Creation Limited, Purv Flexipack Limited, Motisons Jewellers Limited, Goyal Salt Limited, Infollion Research Services, Shera Energy Limited, Cool Caps Industries Limited, Insolation Energy Limited etc.
SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.