Premier Roadlines Limited offers logistics solutions for companies, especially for land transportation of goods between 1 MT and 250 MT.
Premier Roadlines IPO is set to raise Rs 40.36 crores. The issue is entirely a fresh issue of 60.24 lakh shares.

About Premier Roadlines:

• They are engaged in providing logistics solutions to businesses, particularly surface transportation of goods ranging from 1 MT to 250 MT.
• They are goods transport agency providing general transport services, project logistics, and over dimensional/overweight cargo movements on a Pan India basis to customers wherein they provide point to point services in which the goods are loaded from the premises of the customer and are delivered to the delivery point as specified by them.
• They mainly serve B2B customers under the Contract Logistics division, who have requirement to transport bulk quantities of their goods from one place to another within India and other neighboring countries like Nepal, Bhutan etc.
• In F.Y. 2022-23, they have delivered over 26,000 orders across India.
• They have their Registered and Corporate Office located in Delhi, along with 28 Branch Offices located in various cities of India like Ahmedabad, Bengaluru, Chennai, Guwahati, Hyderabad, Kolkata, Mumbai, Nashik, Pune etc.

Financials: Premier Roadlines IPO

Anchors: Premier Roadlines IPO

Premier Roadlines IPO: Salient Points

• India’s logistics are estimated to account for about 14.4% of GDP.
• The Net Proceeds are proposed to be utilized in the manner set forth below:

• To provide with transportation services, they engage third party operators i.e. small fleet owners and agents who provide them with necessary transportation facilities such as containerized trucks, Trailers, Hydraulic axles etc.
• Accredited as an approved transporter by Indian Bank’s Association.
• Detail of Orders, Customers and Average Revenue per Order for the period/years indicated below:

• Company’s customers come from sectors such as infrastructure, energy, electricity, oil and gas, mechanical engineering, construction, metallurgy, renewable energies, etc. These include KEC International Limited, ThyssenKrupp Industrial Solutions (India) Private Limited, Tata Project Limited, G R Infraprojects Ltd, Tata Power Solar Systems Limited, Sterlite Power Transmission Limited etc.
• Peers

• Awarded with “The Best Logistics-Large Fleet” for accelerating Large Fleet Transportation Services Pan India by Keller Group in Business Partner Meet-2022, Chennai.
• Awarded as Preferred Supplier, by Triveni Turbines in Logistics Summit, 2023.
• Company’s Revenues have grown at CAGR of 43 % from FY21-FY23. PAT has grown at CAGR of 115% during the same period.
• Premier Roadlines IPO is coming at a PE ratio of 14.6x (FY23 Earnings) and 17.4x (fy24 annualized earnings)
• I intend to apply in Premier Roadlines IPO subject to availability of funds. Looks OK compared to peers.
• GMP as reported on social media has been Rs. 140.
• Hem securities is the Lead Manager to the issue. The IPOs lead managed by them have given a good return to the investors. These include names like Amkay Products Limited, Aspire & Innovative Advertising Limited, Blue Pebble Limited, Enfuse Solutions, Sona Machinery Limited, Harshdeep Hortico Limited, Megatherm Induction Limited, New Swan Multitech Limited, Shri Balaji Valve Components Limited, Shanti Spintex, SJ Logistics,Siyaram Recycling Industries Limited, Deepak Chemtex Limited, Paragon Fine And Specialty Chemicals, E Factor Experiences Limited, Arabian Petroleum Limited, ,Saakshi Medtech and Panels Limited, Kahan Packaging Limited, Asarfi Hospital Limited, Kaka Industries, Green Chef, Vasa Denticity, Chaman Mettalics, Hemant Surgicals, Labelkraft, Concord Control Systems Limited, Earthstahl & Alloys Limited, Silicon Rental Solutions Limited, Krishna Defence and Allied Industries, Prevest Denpro 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.