Brace Port Logistics Ltd IPO: Review, Valuation, Date & GMP

Brace Port Logistics IPO-Complete Overview

Brace Port Logistics IPO an SME IPO is a book-built issue of Rs.24.41 crore by Brace Port Logistics Ltd. which was founded in November 2020. The company offers ocean cargo logistics services to customers in a range of economic sectors. 

The company also offers specific cargo services, like managing goods in foreign nations and delivering them to other foreign countries, air freight, warehousing facilities, and customs clearance services. With a robust network, the company caters to clients in multiple industries, such as pharmaceuticals, medical supplies, sports goods, electronics, consumer durables, perishables, and automotive, both domestically and internationally.

The company serves Bangladesh, Hong Kong, Vietnam, Germany, and the United Arab Emirates. The organization holds certifications for the Occupational Health and Safety Management System (ISO 45001:2015), Environmental Management System (ISO 14001:2015), and Quality Management System (ISO ISO 9001:2015).

The company plans to launch its SME IPO on August 19, 2024.

 Brace Port Logistics IPO Overview

The Rs.24.41 crore Brace Port Logistics Ltd. IPO consists of a fully fresh issue of 30.51 lac Shares, of which 35% are allowed to retail investors, 50% to institutional investors, and 15% to non-institutional investors.

This SME IPO date is from August 19-August 21, 2024. The expected IPO listing date is Monday, August 26, 2024, on NSE and SME. Brace Port Logistics IPO price band is Rs.76 to Rs.80 for each Share.

To open a demat account and apply for the IPO, Click Here.

 

Company Financial

The company’s revenue fell by 22% and PAT was reduced by 21% during FYs ending 31 March 2024 and 31 March 2023.

Below is the synopsis of the company's financial data for the period that concluded 31 March 2024.

• The total revenue of the company is Rs.5,524.59 lac.

• The net worth of the company is Rs.1,377.18 lac.

• The total assets of the company are Rs.2,783.29 lac.

• The company’s EBITDA is Rs.678.91 lac.

(Amount in Lac)

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	2,783.29	1,310.78	1,179.14
Total Revenue	5,524.59	7,093.66	5,419.57
PAT	489.13	618.09	322.39
Net Worth	1,377.18	888.05	419.96
Total Reserves & Surplus	552.18	813.05	344.96
Borrowings	48.97	59.1	-

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

Net Cash Flow In Multiple Activities	31 Mar 2024	31 Mar 2023	31 Mar 2022
Net Cash Flow Operating Activities	52.25	369.60	352.72
Net Cash Flow Investing Activities	-261.42	-115.61	-61.28
Net Cash Flow Financing Activities	-21.26	-98.25	-66.64

 

Service-wise Revenue Breakdown

(Amount in lac)

Service	2023- 2024	2022-2023	2021-2022
Air Freight	789.19	66.10	78.38
Ocean Freight	1,008.11	1,294.76	1,008.11

 

Continent-wise Revenue Breakdown

Continent	2023-2024	2022-2023	2021-2022
Europe	32.68%	19.31%	20.07%
The Americas	35.51%	38.33%	46.68%
Africa	2.5%	2.11%	5.89%
Asia	26.01%	39.31%	26.05%
Oceania	3.31%	0.95%	1.31%

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• To fulfill working capital needs.

• General corporate purposes.

 

Peers of Brace Port Logistics Ltd.

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
Tiger Logistics (India) Ltd.	10	12.26	30.81
AVG Logistics Ltd.	10	7.09	20.18

 

 

Evaluation

The IPO price is Rs.76 to Rs.80 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.5.93 from the last year, the resulting P/E ratio is 13.49x.

Considering the weighted EPS of Rs.6.11 for the last three years, the P/E ratio is 13.09x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 25.50x.

Particulars	P/E Ratio (x)
Highest	30.81
Lowest	20.18
Average	25.50

In simple words, the P/E ratio of Brace Port IPO (13.49x), compared with the industry’s average P/E of 25.50x, has an undervaluation. Hence the price of the Share seems fairly priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths 

• Skilled staff and accomplished leadership team.

• Enduring business relationships.

• Global and pan-Indian reach.

• All-encompassing transportation solutions.

• Wide range of clients from various industries.

• Services with integrated technology.

• Relationship with Suppliers.

• Service Quality.

 

IPO’s Weaknesses

• The company might be unable to fulfill certain of its commitments, such as delivery deadlines, which might leave it open to customer claims, negative press, and significant expenses from subpar work. All of these things could harm the operational outcomes.

• The company carries the risks of transporting goods against applicable regulations since it fails to inspect the contents of the commodities it transports.

• In order to provide connectivity between its software, hardware, network systems, and other business processes, it heavily relies on IT systems. Any malfunction of the IT systems, loss of connectivity, or data loss resulting from such a malfunction could harm the service levels.

• The company had a negative cash flow from its investing and financing activities in the past three years, sustained negative cash flow could impact its growth and business.

 

Brace Port Logistics IPO GMP Today

Brace Port Logistics IPO GMP today is Rs.118.

 

IPO Timetable (Tentative)

The IPO date is from August 19 to August 21, 2024, with allotment on August 22, refund initiation on August 23, and listing on August 26, 2024.

Events	Date
IPO Opening Date	August 19, 2024
IPO Closing Date	August 21, 2024
IPO Allotment Date	August 22, 2024
Refund Initiation	August 23, 2024
IPO Listing Date	August 26, 2024

 

Brace Port Logistics IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to start on August 19, 2024, close on August 21, 2024, and offer a total issue size of 3,051,200 Shares (aggregating up to Rs.24.41 Cr) comprising a whole fresh issue size of 3,051,200 Shares (totaling up to Rs.24.41 Cr).

IPO Opening & Closing Date	August 19, 2024 to August 21, 2024
Face Value	Rs.10 per Share
Issue Price	Rs.76 To Rs.80
Lot Size	1600 Shares
Issue Size	3,051,200 Shares (totaling up to Rs.24.41 Cr).
Offer for Sale	NA.
Fresh Issue	3,051,200 Shares (totaling up to Rs.24.41 Cr).
Listing at	NSE, SME
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Private Ltd.

 

Brace Port Logistics IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1600 Shares) amounting to Rs.128000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (3200 Shares) amounting to Rs.2,56000.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
HNI (Min)	2 Lots

 

Brace Port Logistics IPO Reservation

Institutional Portion	50%
Retail’s Portion	35%
Non-Institutional Portion	15%

 

 

Promoters And Management of Brace Port Logistics Ltd.

• Skyways Air Services Private Limited.

• Mr. Yash Pal Sharma.

• Mr. Tarun Sharma.

• Mr. Sachin Arora. 

• Mr. Rishi Trehan.

Pre-Issue Promoter Shareholding	96.04%
Post-Issue Promoter Shareholding	-

 

IPO Lead Managers

• Holani Consultants Private Ltd.

Dividend Policy

The company has distributed dividends on 7,50,000 Equity Shares at a rate of Rs.20 per Share, for the year ended March 31, 2023, totaling Rs.1,50,00,000.

Paid an interim dividend of Rs.1.25 per Share on 82,50,000 equity shares during the current fiscal year, for a total of Rs.1,03,12,500.

Conclusion

The company has experienced negative cash flow in financing and investing activities in the last fiscal years. To achieve its goals, the company is currently launching an IPO for the general public. We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable data about the company's insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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