Tejas Cargo India Limited is coming up with an IPO with a fresh issue of 63,00,000 shares worth INR 105.84 crores. The company aims to acquire trailers, fund working capital, repay borrowings, and support corporate purposes. 

Tejas Cargo IPO – Important Dates 

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Tejas Cargo India Limited IPO – Company Profile 

Tejas Cargo India Limited, based in Faridabad, offers long-haul FTL transportation across India, serving logistics, steel, cement, e-commerce, and FMCG sectors with technology-driven operations, efficient fleet management, and optimised supply chain solutions. 

The company specialises in FTL transportation and fulfils contracts and ad-hoc demands while optimising fleet use. Strategic partnerships with logistics providers enhance reach, offering integrated logistics solutions for efficient freight and network management. 

The company engages drivers per delivery to optimise costs and scalability while ensuring reliability. With 284 personnel, it maintains safety through third-party verifications, enabling efficient logistics operations and a competitive edge in the industry. 

Tejas Cargo India Ltd IPO Fundamental Analysis 

Tejas Cargo India Limited’s financial analysis reveals a mixed performance. Revenue grew, equity increased, debt reliance reduced, profitability improved, EPS rose, RoNW declined, and liquidity weakened, indicating expansion with financial challenges. 

• Revenue Trend: The revenue increased from ₹38,178.52 lakhs in March 2023 to ₹41,932.61 lakhs in March 2024. The revenue for the current year’s 6-month period ending September 2024 is INR 25,260.73 lakhs.
• Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing. 
• Profitability: The profit after tax (PAT) increased from ₹985.85 lakh in March 2023 to ₹1,322.22 lakh in March 2024, boosting investor confidence. The profit for the period ending September 2024 is ₹874.50 lakh. 

• Earnings per Share (EPS): The diluted EPS increased from ₹5.60 in March 2023 to ₹7.52 in March 2024, reflecting higher earnings per share for investors. The diluted EPS for the period ending September 2024 is ₹4.97. 
• Return on Net Worth (RoNW): The RoNW has reduced from 75.70% to 13.85%, indicating a decrease in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations. 

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Tejas Cargo IPO Financial Analysis 

Tejas Cargo India Limited IPO Peer Comparison 

Tejas Cargo India Limited, AVG Logistics Limited, and RITCO Logistics Limited are leading logistics firms. Tejas Cargo excels in profitability, while AVG and RITCO have higher revenues with varying profitability, efficiency, and market performance. 

Tejas Cargo India Ltd IPO Objective 

The main objective of Tejas Cargo India Limited is to acquire additional trailers, meet working capital needs, and repay or prepay certain borrowings, ensuring operational efficiency, financial stability, and sustained business growth. 

1. Purchase of additional trailers for the company: The company intends to utilise INR 31.76 crores to acquire 64 new trailers to enhance cargo capacity, flexibility, and cost-effectiveness, supporting expansion into bulk transportation industries like metals, mining, and capital goods. 

2. To meet the working capital requirement: The company plans to utilise INR 30 crores to fund working capital for Fiscal 2025 and 2026, supporting growth, unlocking internal accruals, reducing finance costs, enhancing profitability, and improving financial stability per its business plan. 

3. Repayment and/or pre-payment, in whole or part, of certain borrowings availed by the company: The company aims to utilise INR 15 crores to repay or prepay borrowings, reducing debt servicing costs, improving the debt-to-equity ratio, enhancing financial stability, and enabling future business growth and expansion opportunities. 

4. General Corporate Purposes: The company will deploy the balance of funds for general corporate purposes, including strategic initiatives, growth opportunities, marketing, contingencies, working capital, operational expenses, and other business needs in the ordinary course of operations. 

Tejas Cargo IPO Risks And Challenges 

Tejas Cargo India Limited’s risk includes legal proceedings, road transport disruptions, and driver shortages, potentially impacting operations, finances, and reputation despite insurance coverage and a track record of timely service. 

• Their Company, Promoter, and Director face pending legal proceedings. Adverse rulings may increase liabilities and expenses. Litigation could divert management attention and financial resources, impacting operations, reputation, and compliance risks despite insurance coverage. 

• Their business relies on India’s road network, facing risks like weather, political unrest, accidents, and delays. Disruptions can impact deliveries, damaged goods, harm reputation, and affect financial performance despite their track record of timely service. 

• Their Faridabad-based logistics company offers long-haul FTL transportation across India. Driver shortages, service inconsistencies, and accidents pose risks, potentially impacting operations, financial performance, and brand reputation despite insurance coverage. 

Tejas Cargo India Ltd IPO – Industry & Market Potential 

The 3PL market in India is projected to grow at a 13.2% CAGR from CY23-29, driven by advanced technologies, manufacturing expansion, healthcare logistics, cold chain solutions, e-commerce growth, last-mile delivery, and increasing outsourcing of logistics functions. 

The Dedicated Contract Carriage (DCC) segment, where shippers lease vehicles exclusively, is expected to grow at a 14.4% CAGR from CY23-29, reaching ₹272.9 billion and increasing its market share from 7.8% to 8.3%. 

The International Transportation Management (ITM) segment, driven by globalisation, is projected to grow at a 14.7% CAGR from CY23-29, reaching ₹80.4 billion and increasing its market share from 2.3% to 2.5% by CY29. 

Tejas Cargo India Limited IPO – Type of Offer 

Tejas Cargo India Limited is coming up with an IPO with a fresh issue of 63,00,000 shares worth INR 105.84 crores. The company aims to acquire trailers, fund working capital, repay borrowings, and support corporate purposes. 

Tejas Cargo IPO Offer Size 

The offer size of Tejas Cargo India Limited is INR 105.84 crores, consisting of a fresh issue of 63,00,000 shares. The company aims to acquire trailers, fund working capital, repay borrowings, and support corporate purposes. 

Tejas Cargo India Limited IPO Allotment Structure 

Tejas Cargo India Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII), according to SEBI regulations. 3,15,200 shares are reserved for market makers. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

● Market Maker Reservation: A portion of shares, i.e. 3,15,200 shares, are reserved for market makers. 

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How to apply for Tejas Cargo India IPO?

To apply for the Tejas Cargo India Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Tejas Cargo India Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Tejas Cargo India Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

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How do you check Tejas Cargo India IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Tejas Cargo India Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Tejas Cargo India Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the Tejas Cargo India Limited IPO:

● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Tejas Cargo India Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status. 

● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

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Tejas Cargo India Ltd IPO Offer Registrar

The registrar for the Tejas Cargo India Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

Bigshare Services Private Limited

S6-2, 6th Floor, Pinnacle Business Park, 

Mahakali Caves Road, Next to Ahura Centre, 

Andheri East Mumbai –400093, 

Maharashtra, India

Tel. No.: +91-22-62638200

Email: [email protected]

Website: https://www.bigshareonline.com 

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