Deccan Transcon Leasing Limited is gearing up for its initial public offering (IPO), with a total issue size of ₹65.05 Crores. The IPO includes a Fresh Issue of 55.24 Lakh Shares worth ₹59.65 Crores and an Offer for Sale of 5.00 Lakh Shares amounting to ₹5.4 Crores. The subscription window is open from September 13 to September 18, 2024, with the allotment date expected on September 20, 2024, and shares scheduled to list on the NSE SME around September 23, 2024.

Share Price and Investment Details

The IPO price band is set between ₹102 and ₹108 per share, with a minimum lot size of 1,200 shares. Retail investors need to invest at least ₹129,600, while High-Net-Worth Individuals (HNIs) are required to invest a minimum of ₹259,200 for two lots (2,400 shares).

IPO Management and Market Details

The book-running lead manager for the IPO is UNISTONE CAPITAL PRIVATE LIMITED, with LINK INTIME INDIA PRIVATE LIMITED serving as the registrar. Giriraj Stock Broking Private Limited is the sole Market Maker. The company has raised ₹15.12 Crores from anchor investors, with allocations at ₹108 per share.

Grey Market Premium (GMP) Insights

The Grey Market Premium (GMP) for Deccan Transcon Leasing IPO is currently estimated to be between ₹50 and ₹55. This premium reflects the potential listing gains but is based on informal trading, which may not accurately predict the final listing price. The GMP is mentioned for educational purposes and should be considered cautiously.

Live Subscription Status

As of 3:55 PM on September 16, 2024, the IPO has been subscribed 11.39 times on its second day. For real-time updates, check the live subscription status at the NSE website.

IPO Allotment Process

The allotment of shares is expected to be finalized on September 20, 2024. Investors can check their allotment status by visiting the IPO allotment status page, selecting Deccan Transcon Leasing Limited, and entering their application number, PAN, or DP Client ID.

Utilization of IPO Proceeds

The funds raised from the Fresh Issue will be allocated as follows:

₹2,774.76 Lakhs for the procurement of tank containers.

₹1,150.00 Lakhs for working capital requirements.

For general corporate purposes.

Financial Performance and Valuation

Deccan Transcon Leasing has demonstrated solid financial performance, with revenue rising from ₹15,319.40 Lakhs in FY22 to ₹18,061.76 Lakhs in FY23. The EBITDA and PAT have also shown significant growth. The pre-issue EPS is ₹6.87, and the post-issue EPS is ₹5.20, with a pre-issue P/E ratio of 15.72x and a post-issue P/E ratio of 20.76x. The industry P/E ratio stands at 23.33x, indicating that the IPO is reasonably priced.

The company’s high ROCE of 41.43% and ROE of 45.03% further validate the investment potential. The GMP suggests potential listing gains of 45%-50%, making the IPO an attractive option for investors seeking short-term gains or long-term investment opportunities.

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