Brace Port Logistics IPO: Opportunity or Risk?

The global logistics industry is witnessing the emergence of a promising new player as Brace Port Logistics Limited prepares to launch its Initial Public Offering (IPO). Founded in late 2020, this young company has rapidly carved out a niche in the competitive world of international cargo logistics.

This upcoming IPO is set to open for subscription on August 19, 2024, and will close on August 21, 2024. This three-day window provides potential investors with the opportunity to participate in the company’s public listing on the NSE SME platform. 

Also read: Initial Public Offering (IPO): Types, Benefits, and Upcoming IPOs in 2024

About Brace Port Logistics Limited 

Brace Port Logistics Limited, established in late 2020, has swiftly emerged as a leading player in the global cargo logistics segment. While its core expertise lies in ocean freight services, the company has diversified its portfolio to encompass air freight, warehousing, and specialised cargo handling across international borders. Their customs clearance services further streamline the complex process of global trade for their clientele.

The firm’s reach extends far beyond India’s shores, serving a diverse range of industries, from life-saving medical supplies to cutting-edge electronics and robust automotive parts. Their global network notably includes key markets such as Germany, Vietnam, the UAE, Hong Kong, and Bangladesh, positioning them as an international logistics provider.

Source: Brace Port Logistics

Brace Port’s commitment to excellence is evident in its triple ISO certifications, covering quality management, environmental stewardship, and occupational health and safety. This adherence to international standards underscores their dedication to delivering top-tier services while maintaining responsible business practices.

Brace Port Logistics Limited IPO details

IPO Date	August 19 to August 21, 2024
Face Value	₹10 per share
Price Band	₹76 to ₹80 per share
Lot Size	1600 Shares
Total Issue Size	3,051,200 shares
Fresh Issue	3,051,200 shares
Issue Type	Book Built Issue IPO
Listing At	NSE SME
Shareholding post issue	8,250,000
Share holding post issue	11,301,200

For more information, refer to the Brace Port Logistics IPO RHP.

Current financials of Brace Port Logistics 

	31 Mar 2024	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets (₹ lakhs)	2,783.29	1,310.78	1,179.14	409.61
Revenue (₹ lakhs)	5,524.59	7,093.66	5,419.57	706.25
Profit After Tax (₹ lakhs)	489.13	618.09	322.39	22.57
Net Worth (₹ lakhs)	1,377.18	888.05	419.96	97.57
Reserves and Surplus (₹ lakhs)	552.18	813.05	344.96	22.57

Also read: 5 Top Stock Brokers in India with Lowest Brokerage Fees: A Detailed Analysis

Brace Port Logistics IPO objectives

Brace Port Logistics aims to utilise the Net Proceeds from its Fresh Issue to address two primary objectives. 

• Firstly, the company intends to fund its working capital requirements, which is crucial for maintaining smooth operations and supporting growth. This could involve managing inventory, improving cash flow, or addressing other day-to-day financial needs of the business. 
• Secondly, the proceeds will be directed towards general corporate purposes. This broad category allows the company flexibility in allocating funds to various areas that could benefit the overall business, such as potential expansions, upgrades, or other strategic initiatives that may arise. 

These two objectives demonstrate Brace Port Logistics’ focus on immediate operational needs and long-term corporate development.

Should you apply for the Brace Port Logistics IPO?

As a newcomer in the logistics sector, founded in 2020, the company showcases remarkable adaptability—a trait that could prove valuable in the fast-evolving world of global trade and technology.

Their comprehensive service portfolio, spanning ocean and air freight, warehousing, and specialised cargo handling, positions them as a one-stop solution for a diverse clientele. This versatility, coupled with their broad customer base across various industries, provides a buffer against sector-specific downturns.

However, potential investors should weigh these strengths against the company’s relative inexperience. Brace Port’s youth, while an asset in terms of flexibility, also means they lack the established networks, resources, and market presence of industry veterans. 

Ultimately, an investment in Brace Port Logistics represents a bet on the future of a growth-orientated player in a critical global sector. Those with a higher risk tolerance and belief in the potential of emerging logistics firms might find this IPO appealing. However, more conservative investors might prefer to wait and see how the company performs post-listing before committing their capital.

Apply for Brace Port Logistics IPO here

Dhanush offers a streamlined application process and access to expert insights, potentially making it an advantageous choice for participating in this public offering. As always, it’s crucial to conduct thorough research and consider your individual financial goals before making any investment decisions.

Disclaimer: As with any investment decision, it’s crucial to conduct thorough research, consider your personal financial goals and risk tolerance, and potentially consult with a financial advisor before participating in this or any IPO.