The logistics company’s services include shipment planning, route optimisation, fleet selection, documentation, tracking, communication and coordination and performance evaluation.
MUMBAI, Feb 12 (The CONNECT) – Logistics company Tejas Cargo India Limited has fixed the price band of ₹ 160 to ₹168 per Equity Share of face value ₹10 each for its initial public offer opening on February 14 and Closing on February 18, 2025.
The Company’s equity shares are proposed to be listed on the SME Platform of NSE – NSE Emerge. Its services include shipment planning, route optimisation, fleet selection, documentation, tracking, communication and coordination and performance evaluation.
The issue is entirely a fresh issue of 63,00,000 equity shares. The company has reserved 63,200 equity shares under the employee reservation portion for subscription by eligible employees and 3,15,200 equity shares is reserved for market maker reservation portion.
Proceeds from the fresh issue to the extent of Rs. 31.76 cr will be utilized for purchase of additional trailers for the Company; Rs 30 crore for meeting working capital requirements; Rs 15 cr for repayment and/or pre-payment, in full or part, of certain borrowings availed by the Company; and general corporate purposes.
The company has facilities for fleet placements, and fleet loading, and unloading through a network of 23 branches. Nine of these branches are also capable of managing operations and performing fleet maintenance and repairs. To service and maintain its fleet, it maintains a specialized three-acre in-house maintenance facility manned by automobile service professionals. Additionally, the company holds a PESO license for storing petroleum, and to run a petroleum distribution station for captive use. This strategic setup ensures access to fuel at competitive prices, optimizing fuel costs.
They have completed on a pan India basis over 98,913 trips and 58,943 trips during Fiscal 2024 and for the six months period ended September 30, 2024, respectively. It derives more than 98% of their revenue by providing long haul supply chain transportation services including shipment planning, route optimisation, fleet selection, documentation, tracking, communication and coordination and performance evaluation.
As on October 31, 2024, it has a fleet size of 1,131 vehicles consisting of 218 trailers and 913 container trucks, equipped with Internet of Things (“IoT”)-based solutions such as Geo Fencing, Centralised Digital Locking, GPS and SIM based tracking, Advance Driver Assistance System (“ADAS”)/Driver State Monitoring (“DSM”) as well as AI-powered rear camera technology.
Tejas Cargo’s revenue from operations increased by 9.83% to ₹419.33 crore for the year ended March 31, 2024 from ₹ 381.78 crore for the year ended March 31, 2023, primarily due to increased number of placements. Profit after tax increased from ₹ 9.86 crore for the year ended March 31, 2023 to ₹13.22 crore for the year ended March 31, 2024.
For the six months ended September 30, 2024 revenue from operations stood at ₹ 252.61 crore and profit after tax stood at ₹ 8.74 crore.
The Issue is being made through the Book Building Process, wherein not more than 50% of the Net Issue shall be allocated to Qualified Institutional Buyers, not less than 15% of the Net Issue shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Net Issue shall be available for allocation to Retail Individual Bidders.
New Berry Capitals Private Limited is the sole book-running lead manager