Last Updated on September 26, 2023 by BFSLTeam BFSLTeam
Pristine Logistics & Infraprojects Ltd filed its DRHP with the market regulator Securities and Exchange of India in May 2022. Pristine Logistics is one of the leading multimodal integrated logistics companies in India.
The IPO will be inclusive of both a fresh issue and an Offer for Sale. Fresh issues are worth Rs. 250 crore whereas OFS will include up to 2,00,66,269 equity shares by existing promoters and shareholders. These OFS shares will be offered by multiple shareholders such as Amit Kumar, Sanjay Marwar, Rajnish Kumar, Durgesh Govil, Jyoti Kumar, Renu Govil, and India Infrastructure Fund II.
Learn about the company’s financials, its strengths and other aspects to make a well-informed investment decision.
Also Read: How does an IPO work?
Table of Content
About Company
Pristine Logistics & Infraprojects Ltd started its journey in 2008 and has grown to be one of the leading multi-modal integrated logistics firms in India. The company offers logistics infrastructure and services for railway networks.
The company’s integrated logistics solutions offering include rail transportation, road transportation, cargo handling, and warehouse and storage management. Pristine Logistics is operational on both the eastern and western coasts of the country.
Pristine Logistics operates 5 logistics parks across Ludhiana, Kanpur, Patna, Siliguri, and Birgunj. The company also aims to extend its services to South India with the inauguration of its subsidiary Pristine Malwa Logistics Park Pvt Ltd. The company currently has a warehouse capacity of 9,05,000 square feet, with a total installed capacity of 6,48,000 TEU as of FY2021.
Company Financials
Refer to the following table to learn about the company’s financial performance in the last few years in the market:
| Parameters | 31st March 2021 | 31st March 2020 | 31st March 2019 |
| Total Assets | 10,120.61 | 6,934.02 | 6,092.74 |
| Total Liabilities | 6,217.43 | 3,059.74 | 2,175.63 |
| Total Expenses | 5,583.37 | 4,802.90 | 3,629.44 |
| Total Revenue | 5,632.72 | 4,743.55 | 3,772.86 |
| Profit After Tax | 48.26 | (85.01) | 114.03 |
| EBITDA | 1,022.00 | 475.58 | 440.18 |
| Earnings Per Share * (Basic & Diluted) | 1.62 | (1.65) | 2.03 |
*Values in Rs. millions except earnings per share
Also Read: IPO investment strategy
Strengths
There are a few differentiating factors that make Pristine Logistics stand out from its peers. Here are a few of them to help you make an informed financial decision about investing in this IPO:
- Pristine Logistics has a distinctive and holistic approach towards its services and customers. Along with its focus on infrastructure, the company also provides multi-modal transportation services, terminal services, and 3PL services ensuring end-to-end connectivity.
- The logistics company believes that it has built quite a reputation for handling projects successfully based on the return rate of its customers.
- The company has always been trying to implement design and technological innovations in its business. It has incorporated the use of dwarf containers, containerisation of bulk cargo for last-mile, customised IT solutions for multiple IT and software tools, etc., as part of its efforts.
- Pristine Logistics & Infraprojects has managed an efficient capital structure with numerous sources of funding.
- The company has a team of skilled and experienced personnel. Their expertise ranges from civil services to engineering.
Risks Involved
Along with the many strengths that are unique to Pristine Logistics, there are some risks to this company which are integral to the type of business it operates. Here are a few of them:
- The company’s business is subject to credit risks. Credit risk is when a customer or client fails to meet its contractual financial obligations. This mostly arises from investments, loans, advances, trade receivables or any other type of liability.
- As it is an infrastructure company, Pristine Logistics has multiple under-construction projects. Any delays, cost overruns, changes in regulations or other factors can negatively affect its business.
Also Read: Risk of investing in IPO
Summary
Pristine Logistics and Infraprojects Limited has been one of the leading infrastructure and logistics firms. The company has recently got SEBI’s nod to float a Rs. 250 crore IPO and an OFS of 20 million equity shares.
The company aims to utilise the proceeds from the IPO to repay its debts along with other corporate purposes. However, if a pre-IPO placement takes place, as the company plans, the number of fresh issues will be reduced.
FAQs
Pristine Logistics aims to utilise its proceeds from IPO to pay off its debts for its subsidiaries as well as for other general corporate purposes.
Pristine Logistics may consider launching a pre-IPO placement. If launched, the total worth of its fresh issue will be reduced.
HSBC Securities and Capital Markets (India) Private Limited, JM Financial, and ICICI Securities are the book-running lead managers of the Pristine Logistics IPO.
Pristine Logistics has witnessed a growth of 24% and 36% in its profit and EBITDA in the last 4 years, respectively. In FY22, the company had a turnover of Rs. 501 crore.
