Kaushalya Logistics Limited is set to enter the market with its Initial Public Offering (IPO), aiming to raise Rs 37.88 crores. Let’s delve into the specifics of the offering, its financials, and what potential investors should consider.
### **IPO Overview:**
– **Issue Size:** Rs 37.88 crores
– **Composition:** Fresh issue of 35.5 lakh shares (Rs 26.63 crores) and offer for sale of 15 lakh shares (Rs 11.25 crores).
– **Subscription Period:** December 29, 2023, to January 3, 2024
– **Allotment Date:** Expected on Thursday, January 4, 2024
– **Listing Date:** Tentatively fixed as Monday, January 8, 2024, on NSE SME
– **Price Band:** Rs 71 to Rs 75 per share
– **Lot Size:** 1600 Shares
– **Minimum Investment:** Retail investors – Rs 120,000; HNI – 2 lots (3,200 shares) amounting to Rs 240,000
### **Company Profile:**
Founded in August 2007, Kaushalya Logistics offers clearing and forwarding services to a leading cement company in India. Additionally, the company is involved in the distribution of electronics and home appliances through an online e-commerce platform. In FY 2022-23, it expanded into commercial real estate leasing.
**Services offered by Kaushalya Logistics include:**
1. **Logistics & Transportation:** Customized services to cement companies, including multimodal transportation, pick-up, packing, delivery, distribution, and full documentation.
2. **Land Transportation:** Shipping goods by land, organizing local transport to warehouses.
3. **Warehousing and Distribution:** Complete warehousing solutions, from creating invoices to organizing transportation for delivery to distributors.
### **Financial Snapshot:**
– **Revenue Growth:** 894.14% increase from FY 2021 to FY 2023
– **Profit After Tax (PAT):** 87.43% rise from FY 2021 to FY 2023
– **Assets:** Rs 14,069.86 Lakhs (As of March 31, 2023)
– **ROE:** 4713.49%
– **ROCE:** 70.48%
– **EPS:** Rs 470.58
### **IPO Objectives:**
The Net Proceeds from the IPO will be utilized for:
1. Repayment of Unsecured Loan
2. Funding Working Capital Requirements
3. General Corporate Purposes
### **Promoter Holding:**
– **Pre-Issue:** 99.99%
– **Post-Issue:** 72.98%
### **Lead Manager and Registrar:**
– **Lead Manager:** Khandwala Securities Limited
– **Registrar:** Skyline Financial Services Private Ltd
### **Conclusion:**
Kaushalya Logistics IPO presents an opportunity for investors to participate in a company with diversified business verticals and robust financial performance. As always, potential investors are advised to thoroughly review the Draft Red Herring Prospectus (DRHP), consider the risk factors, and make informed decisions based on their investment goals. The subscription period provides a window for investors to assess the IPO’s potential and determine its alignment with their portfolio strategy.
