Kaushalya Logistics Limited has formally applied for an initial public offering (IPO) with the Securities and Exchange Board of India (SEBI) on December 28, 2023. The IPO, valued at Rs 36.60 crores, comprises a fresh issue of 33.8 lakh shares amounting to Rs 25.35 crores and an offer for sale of 15 lakh shares totaling Rs 11.25 crores.
Here are the key details of the Kaushalya Logistics IPO:
**IPO Schedule:**
– The IPO subscription period is from December 29, 2023, to January 3, 2024.
– The basis of allotment is expected to be finalized on January 4, 2024.
– The listing on NSE SME is tentatively scheduled for January 8, 2024.
**Price Band and Lot Size:**
– The IPO price band is set at ₹71 to ₹75 per share.
– The minimum lot size for an application is 1600 shares.
– Retail investors need a minimum investment of ₹120,000, and the minimum lot size investment for HNIs is 2 lots (3,200 shares) amounting to ₹240,000.
**Issue Details:**
– The IPO is a book-built issue with a total issue size of 4,880,000 shares.
– This includes a fresh issue of 3,380,000 shares aggregating up to ₹25.35 crores and an offer for sale of 1,500,000 shares amounting to ₹11.25 crores.
**Book Running Lead Manager and Registrar:**
– Khandwala Securities Limited is the book running lead manager for the Kaushalya Logistics IPO.
– Skyline Financial Services Private Ltd is the registrar for the issue.
**Market Maker:**
– Nikunj Stock Brokers is the market maker for the Kaushalya Logistics IPO.
**IPO Reservation:**
– QIBs can bid for up to 50% of the Net Issue.
– Retail investors are offered not less than 35% of the Net Issue.
– HNIs (NII) can bid for up to 15% of the Net Issue.
**Promoter Holding:**
– Uddhav Poddar is the Promoter of the company.
– Shareholding pre-issue is 99.99%, and post-issue is 72.98%.
**Anchor Investors:**
– Kaushalya Logistics IPO raised Rs 10.01 crore from anchor investors.
– The anchor lock-in period for 50% of shares ends on February 16, 2024, and for the remaining shares, it ends on May 20, 2024.
**Financials:**
– The company reported significant growth with revenue increasing by 894.14% and profit after tax rising by 87.43% between FY22-23 and FY21-22.
**Objects of the Issue:**
– Repayment of unsecured loans.
– Funding of working capital requirements.
– General corporate purposes.
**Key Performance Indicators:**
– Post P/E (x): 16.2
– Market Cap (₹ Cr.): 138.98
– ROE: 4713.49%
– ROCE: 70.48%
– EPS (Rs): 470.58
– RoNW: 36.50%
**IPO Review:**
– The IPO review suggests that the company, engaged in logistics services, e-commerce, and realty business, operates in competitive and fragmented segments. While the issue appears fully priced based on FY24 annualized earnings, the company’s higher indebtedness raises concerns. However, considering the promising prospects for infrastructure development and increased cement consumption, investors may consider the IPO for medium to long-term rewards.
**Prospectus:**
– The Detailed Red Herring Prospectus (DRHP) for the Kaushalya Logistics IPO is available for detailed information.
In summary, Kaushalya Logistics Limited, with a diversified business portfolio, aims to raise capital through its IPO to address various financial needs, including debt repayment, working capital, and general corporate purposes. Investors are encouraged to refer to the prospectus for comprehensive details and perform due diligence before making investment decisions.
