Paradeep Parivahan (PPL) a logistics and transportation services provider is going to launch its Initial Public Offering (IPO) on 17th March 2025. The company based out of Odisha has strong presence in the eastern region and caters to key industrial clients. This IPO is an opportunity for investors to tap into India’s growing logistics space. Here’s a deep dive into Paradeep Parivahan IPO review and key aspects for potential investors.
Table of Contents
#1 Paradeep Parivahan IPO Review – Company Overview
Founded in 2000 Paradeep Parivahan specialises in transportation and logistics, bulk cargo, industrial goods and specialized freight solutions. The company has modern fleet and long term contracts with major industrial clients which ensures revenue stability. It has invested in warehousing and supply chain optimization to reduce operational inefficiencies and improve cost-effectiveness.
- Primary Locations: Odisha, Jharkhand, Chhattisgarh.
- Key Routes: Paradeep, Bhubaneswar, Haldia, and Kolkata.
- Planned Expansion: Entry into Gujarat and Maharashtra for port-based logistics services.
#2 Paradeep Parivahan IPO Analysis – Industry Outlook
Indian logistics market is expected to grow at 10-12% CAGR over the next 5 years driven by government initiatives like PM Gati Shakti, digitization, and increasing adoption of multimodal logistics solutions. Key trends in the industry are:
- Infrastructure Expansion: Development of national highways, dedicated freight corridors (DFC), and inland waterways.
- E-commerce Boom: Increased demand for logistics services due to online retail growth.
- Technology Integration: Adoption of AI-based route optimization, IoT tracking, and warehouse automation.
- Government Policies: Implementation of GST, PLI schemes, and relaxation of FDI norms in logistics.
With its strategic focus on port-based and industrial logistics, PPL is positioned to benefit from the increasing demand for bulk transportation solutions.
#3 Paradeep Parivahan IPO Review – Offer Details
📌 IPO Price: INR 93 – 98 per share
📌 IPO Opening Date: 17 March 2025
📌 IPO Closing Date: 19 March 2025
📌 Issue Size: INR 44.86 crore
📌 Total Shares Offered: 45,78,000 equity shares
📌 Market Maker Reservation: 5,97,600 shares
📌 Anchor Investor Reservation: 11,94,000 shares
📌 Listing Exchange: BSE SME
📌 Listing Date: 24 March 2025
📌 Qualified Institutional Buyers (QIBs): 50%
📌 Retail Individual Investors (RIBs): 35%
📌 Non-Institutional Investors (NIIs): 15%
#4 Paradeep Parivahan IPO Analysis – Financial Performance
The company has shown steady revenue growth and improved profitability. Strong EBITDA and ROE suggest efficient capital utilization. Also ,debt to equity ratio is low which reduces financial risk.
| FY 2022 | FY 2023 | FY 2024 | H1 FY 2025 | |
| Revenue | 187.97 | 202.48 | 211.27 | 137.51 |
| Expenses | 184.93 | 193.21 | 190.75 | 131.02 |
| Net income | 2.84 | 6.56 | 15.02 | 5.18 |
| Margin (%) | 1.51 | 3.24 | 7.11 | 3.77 |
| EBITDA (%) | 11.14 | 12.41 | 16.23 | 9.16 |
| ROE (%) | 10.66 | 20.89 | 33.62 | 9.03 |
| Debt/Equity | 2.18 | 1.52 | 0.80 | 1.03 |
#5 Paradeep Parivahan IPO Review – Use of IPO Proceeds
The funds raised through the IPO will be utilized as follows:
- Fleet Expansion: Purchase of additional trucks and cargo carriers.
- Technology Upgrades: Investments in GPS tracking, AI-based route optimization, and warehouse management.
- Debt Repayment: Reduction of existing liabilities to strengthen the balance sheet.
- General Corporate Purposes: Working capital requirements and operational improvements.
#6 Paradeep Parivahan IPO Analysis – Comparison with Listed Peers
Paradeep Parivahan’s IPO is reasonably priced compared to its listed peers. With a P/E ratio of 6.93, it is significantly lower than Allcargo Logistics (16.08) and Container Corporation of India (CONCOR) (33.49) which makes it an undervalued stock. The company’s Return on Net Worth (RONW) of 9.03% is better than Allcargo (3.36%) and CONCOR (5.22%). But the company’s book value (INR 59.89 Cr.) is much lower than its peers so it is a small-cap player in a competitive industry.
While its financials suggest strong profitability and good pricing, investors should consider the risks associated with its small size, scalability challenges, and industry cyclicality. So risk-taking investors looking for a high-potential small-cap stock may find this IPO attractive, whereas those who prefer stability may opt for larger players like CONCOR or Allcargo Logistics.
#7 Paradeep Parivahan IPO Review – Collaborations & Major Projects
The company has tied up with major industrial houses like Indian Oil Corporation (IOCL) and Indian Farmers Fertilizer Cooperative (IFFCO) which ensures steady inflows of business. Additional partnerships with logistics tech startups for fleet tracking and efficiency enhancement further strengthen its operational capabilities. Key projects of the company:
- Indian Farmers Fertiliser Cooperative Limited (IFFCO), Paradip
- Indian Oil Refinery Project, Paradip
- JSW Odisha (Cement & Steel)
- Gopalpur Port Projects
- Paradip International Container Terminal (JM Baxi & Co)
- MESCO Railway Siding
- Brahmani River Pellets Ltd
- Jajpur Cement & Other Cement Projects
- Mining & Coal Logistics (MCL & WCL)
- Dhanmandal & Manguli Railway Sidings
#8 Paradeep Parivahan IPO Analysis – Strengths
✅ Expertise in Bulk & Industrial Cargo – Specialized in handling fertilizers, clinker, gypsum, coal, iron ore pellets, and molten sulfur for industrial clients.
✅ Long-Term Contracts with Key Industries – Established contracts with IFFCO, Indian Oil, JSW, Tata Steel, and Brahmani River Pellets Ltd for dedicated logistics services.
✅ Railway Siding Operations – Exclusive handling of Dhanmandal and MESCO railway sidings, ensuring seamless rake movement and cargo evacuation.
✅ Fleet Tailored for Industrial Needs – Owns a specialized fleet designed for bulk cargo, including tankers for liquid transport, bulkers for cement, and trailers for heavy goods.
✅ Multi-Sector Diversification – Unlike peers focused on traditional freight, PPL serves ports, industrial zones, steel plants, cement factories, and railway logistics.
#9 Paradeep Parivahan IPO Review – Risks and Challenges
- Working Capital & Funding Risks – The company requires substantial working capital, and delays in securing funds could impact financial performance. As of 30 September 2024, operational cash flow stood at negative INR 2.48 crore, posing risks to business stability.
- Legal Uncertainty of Promoter – Two cases against Promoter & MD Mr. Khalid Khan are under judicial review. While all required submissions have been made, adverse outcomes could affect leadership and investor trust.
- Conflict of Interest with Group Entities – Group companies in the logistics sector operate without non-compete agreements. The Promoter’s involvement in these entities may lead to preferential treatment, increasing competition, and business risks.
- Negative Cash Flow Volatility – The company’s net operational cash flow declined to negative INR 2.48 crore by 30 September 2024, from INR 15.16 crore on 31 March 2024. If this trend continues, growth plans and operations may be affected.
- Receivables Collection Risk – Trade receivables stood at INR 47.95 crore (34.76% of total income) as of 30 September 2024. With a 70-90-day credit period, payment delays or defaults could strain liquidity and working capital.
#10 Paradeep Parivahan IPO Review – Conclusion
Paradeep Parivahan’s IPO is an opportunity for investors to tap into India’s growing logistics space, especially in the bulk and industrial cargo segment. The company has a regional presence, established client contracts, and a diversified business model across ports, industrial zones, and railway sidings. With steady financials, improving margins, and competitive pricing compared to listed peers, the IPO is reasonably priced for those looking to get into a high-growth small-cap stock.