Rapid Multimodal Logistics is set to launch its initial public offering (IPO) on August 22. The Chennai-based company, which provides end-to-end logistical solutions to clients, is looking to raise ₹8.49 crore through the issue.
The IPO, priced at ₹84 per share, is a fresh issue of 1,011,200 equity shares with a face value of ₹10. The lot size is set at 1,600 shares, making it accessible to retail investors. The issue price is 8.4 times the face value of the equity shares, indicating a premium valuation.
Rapid Multimodal Logistics’ financial performance has been steady, with a revenue decline of only 2% in the financial year ending March 31, 2024, compared to the previous year. However, the profit after tax (PAT) saw an 11% decrease during the same period.
The company’s promoters, including Mr. Narayan Agarwal, Mr. Manoj Goel, Mr. Summit Agarwal, and Ms. Nidhi Agarwal, are well-experienced in the logistics industry. The company’s listed peers, Chartered Logistics Ltd and Shree Vasu Logistics Ltd, have a price-to-earnings (P/E) ratio of 52.89 and 84.08, respectively, indicating a growing demand for logistics services.
The net proceeds from the IPO will be used for general corporate purposes and working capital requirements. Gretex Corporate Services Limited is the book running lead manager, and Bigshare Services Pvt Ltd is the registrar for the issue.
With the logistics industry expected to grow significantly in the coming years, Rapid Multimodal Logistics’ IPO presents an attractive opportunity for investors looking to tap into this growth potential. However, investors should carefully evaluate the company’s financial performance and growth prospects before making an investment decision.
