Tejas Cargo India Limited SME IPO Opens on February 14, 2025; Price Band Set at Rs 160-168 Per Share
BILKULONLINE
Ahmedabad, Feb 13: Tejas Cargo India Limited, a company specializing in long-haul supply chain transportation services by road, is set to launch its Initial Public Offering (IPO) on the SME Platform of the National Stock Exchange (NSE Emerge).
The IPO will open for subscription on Friday, February 14, 2025, and close on Tuesday, February 18, 2025. The price band for the issue has been fixed at Rs 160 to Rs 168 per equity share of face value Rs 10 each.
IPO Details
The IPO is entirely a fresh issue of 63,00,000 equity shares with no offer-for-sale (OFS) component.
63,200 equity shares have been reserved under the employee reservation portion.
3,15,200 equity shares have been earmarked for the market maker reservation portion.
The minimum bid lot is 800 equity shares and in multiples of 800 thereafter.
The floor price is 16.00 times the face value, and the cap price is 16.80 times the face value.
New Berry Capitals Private Limited is the sole book-running lead manager.
Utilization of Funds
The proceeds from the fresh issue will be allocated as follows:
Rs 31.76 crore – Purchase of additional trailers.
Rs 30 crore – Working capital requirements.
Rs 15 crore – Repayment/pre-payment of certain borrowings.
Remaining funds for general corporate purposes.
Business Overview
Tejas Cargo India Limited provides Full Truck Load (FTL) express supply chain transportation services to a broad spectrum of industries, including logistics, steel and cement, e-commerce, FMCG, industrial chemicals, and white goods. The company operates through a network of 23 branches, nine of which also serve as operational and maintenance hubs. It has a three-acre in-house maintenance facility for fleet servicing and holds a PESO license for petroleum storage and distribution.
As of October 31, 2024, the company owns a fleet of 1,131 vehicles, comprising 218 trailers and 913 container trucks, equipped with advanced IoT-based solutions such as Geo Fencing, Centralised Digital Locking, GPS tracking, AI-powered rear cameras, and Advanced Driver Assistance Systems (ADAS).
Financial Performance
The company has demonstrated strong financial growth:
FY 2023-24: Revenue from operations increased 9.83% to Rs 419.33 crore, compared to Rs 381.78 crore in the previous fiscal year.
Profit after tax (PAT) rose from Rs 9.86 crore in FY 2022-23 to Rs 13.22 crore in FY 2023-24.
H1 FY 2024-25: Revenue from operations stood at Rs 252.61 crore, with a PAT of Rs 8.74 crore.
The company completed 98,913 trips in FY 2023-24 and 58,943 trips in the first half of FY 2024-25.
IPO Allocation Structure
The issue will be conducted through the Book Building Process, with allocations as follows:
Qualified Institutional Buyers (QIBs): Not more than 50% of the net issue.
Non-Institutional Investors (NIIs): Not less than 15% of the net issue.
Retail Individual Investors (RIIs): Not less than 35% of the net issue.
With its robust infrastructure, advanced fleet management technology, and steady financial growth, Tejas Cargo India Limited is poised to attract investor interest as it prepares for its public market debut on NSE Emerge.
