The New-Delhi based logistics solutions provider Kaushalya Logistics Limited is set to launch its Initial Public Offering (IPO) on December 29, 2023. The Rs 36.60 crore initial public offering of the Kaushalya Logistics Limited comprises of a fresh issue of 33.8 lakh shares worth Rs 25.35 crore and an Offer-for-sale of 15 lakh shares worth Rs 11.25 crore. The price band is set at Rs 71 to Rs 75 per share at a face value of Rs 10 apiece. The IPO will list on the SME segment of National Stock Exchange (NSE) on January 08, 2024. The SME IPO is among the last public issues to open this year.
About Company
Established in August 2007, Kaushalya Logistics Limited provides clearing and forwarding services to a prominent cement company in India and distributes electronics and home appliances via an online e-commerce platform. In the fiscal year 2022-23, the company expanded its operations to include commercial real estate leasing.
The company’s services are comprehensive and include:
- Logistics & Transportation: Customized services to cement companies include multimodal transportation, distribution, pick-up, packing, delivery, and full documentation.
- Land Transportation: This service involves transporting the customer’s goods over land on which it accepts goods shipped by rail from cement companies and arranges local transport to the warehouses.
- Warehousing and Distribution: The company provides complete warehousing solutions using warehouses owned or rented by the customers. It handles everything from creating invoices and delivery bills via the customer’s ERP system to organizing transportation for delivery to distributors through third-party providers. The company ensures door-to-door delivery, collecting the consignment from the shipper and to the consignee.
Kaushalya Logistics operates in several Indian states, including Tamil Nadu, Kerala, Karnataka, Bihar, and Rajasthan. It has its main office in New Delhi and a regional office in Chennai.
IPO details at a glance
Khandwala Securities Limited is the book running lead manager whereas Skyline Financial Services Private Ltd is the registrar for Kaushalya Logistics IPO. Nikunj Stock Brokers is the market maker.
| IPO Application Date | December 29, 2023, to January 03, 2024 |
| Listing Date | January 08, 2024 |
| Listing On | NSE SME |
| Issue Type | Book Built Issue |
| Face Value | ₹10 per share |
| Price Range | ₹71 to ₹75 per share |
| Lot Size | 1600 Shares |
| Total number of issues | 48,80,000 shares aggregating up to ₹36.60 Cr |
| Fresh Issue | 33,80,000 shares aggregating up to ₹25.35 Crore |
| Sale Offer | 15,00,000 shares aggregating up to ₹11.25 Cr |
| Holdings before issue | 1,51,50,000 Shares |
| Holdings after issue | 1,85,30,000 Shares |
| Market Maker Reserve | 2,54,000 Shares |
| Net Public Issues | 46,35,200 Shares (excluding market maker reservation) |
| Retail Investor Quota | Maximum 50% of net offering |
| QIB Investor Quota | Minimum 35% of net offering |
| NII Investor Quota | Minimum 15% of net offering |
The retail investors can bid only for 1 lot i.e., 1,600 shares whereas HNIs can bid for up to 2 lots. The investment per lot amounts to ₹1,20,000.
Important dates
The dates are mentioned as per the tentative schedule given in the Kaushalya Logistics IPO RHP document.
| IPO opening date | December 29, 2023 (Friday) |
| IPO closing date | January 03, 2024 (Wednesday) |
| UPI mandate confirmation cut-off time | 5 PM, January 03, 2024 (Wednesday) |
| Finalization of allotment basis | January 04, 2024 (Thursday) |
| Credit of Shares to Demat / Refunds / Unblocking of Funds | January 05, 2024 (Friday) |
| IPO Listing Date / Trading of Share | January 08, 2024 (Monday) |
Company’s financials
Kaushalya Logistics Limited recorded an 894.14% growth in revenue and 87.43% rise in profit after tax (PAT) in the FY23 vs FY22.
| Financial Period Ending in | 30 June’23 | 31 Mar’23 | 31 Mar’22 | 31 Mar’21 |
| Net Worth | 2,148.29 | 1,933.64 | 1,226.62 | 849.60 |
| Total Assets | 16,842.35 | 14,069.86 | 6,493.87 | 3,276.49 |
| Revenue from operations | 56,837.41 | 62,462.35 | 6,028.75 | 3,140.32 |
| EBITDA | 425.14 | 1387.57 | 832.65 | 542.63 |
| EBITDA Margin | 0.75% | 2.19% | 13.09% | 16.30% |
| Profit After Tax (PAT) | 214.65 | 707.02 | 377.02 | 300.96 |
| PAT Margin | 0.38% | 1.12% | 5.93% | 9.04% |
| Cash flow from operations | -188.41 | 350.74 | 497.55 | -13.32 |
| Debt-Equity (D/E) Ratio | 2.55 | 2.46 | 3.11 | 2.22 |
| Reserves & Surplus | 2,133.29 | 1,918.64 | 1,211.62 | 834.60 |
| Total Borrowing | 5,488.50 | 4,756.07 | 3,811.23 | 1,888.13 |
| Amount in ₹ Lakhs | ||||
IPO Valuation – Key Performance Indicator
| KPI | Values |
| Market Cap | 138.98 Cr |
| Post P/E | 16.2 |
| Return on equity (ROE) | 4713.49% |
| Return on capital employed (ROCE) | 70.48% |
| Debt/Equity | 2.46 |
| Earnings Per Share (EPS) | ₹470.58 |
| Return on Net Worth (RoNW) | 36.50% |
Objects of the Issue
The company proposes to utilise the capital from issue towards loan repayment, funding working capital requirements and general corporate expenses of the company.
Uddhav Poddar is the promoter of the company. The promoters’ shareholding will shrink to 72.98% post-issue as compared to 99.99% pre-issue.
Note: Please refer to the official RHP document for more information.
