Deccan Transcon Leasing, a comprehensive freight and shipping service provider, has launched its Initial Public Offering (IPO). This Book Built Issue, amounting to ₹65.05 Crores, comprises a Fresh Issue of 55.24 lakh shares worth ₹59.65 Crores and an Offer for Sale (OFS) of 5.00 lakh shares amounting to ₹5.4 Crores.

The company provides end-to-end solutions for logistics, offering services in tank container leasing, fleet management, and Non-Vessel Operating Common Carrier (NVOCC) services. It is known for offering logistics and supply chain solutions across various sectors, with a growing footprint in box container and flexi bag solutions.

Deccan Transcon IPO Details:

Issue Size: ₹65.05 Crores

Price Band: ₹102 to ₹108 per equity share

Subscription Period: September 13 to September 18, 2024

Allotment Date: September 20, 2024

Listing Date: Expected on September 23, 2024

Lead Manager: UNISTONE CAPITAL PRIVATE LIMITED

Market Marker: Giriraj Stock Broking Private Limited

Registrar: LINK INTIME INDIA PRIVATE LIMITED

IPO Lot Size:

Minimum Investment: 1,200 shares (₹129,600 for retail investors)

HNI Investment: 2 lots (2,400 shares) amounting to ₹259,200

Deccan Transcon Leasing's IPO is listed on the NSE SME and is poised for significant investor attention, with Anchor Investors already committing ₹15.12 Crores at the upper price band of ₹108 per share. 1,400,400 equity shares were allocated to anchor investors, affirming the company's appeal.

Grey Market Premium (GMP):

The GMP for Deccan Transcon Leasing is expected to range between ₹50 and ₹55, suggesting a strong market interest, although it's important to note that GMP prices are speculative and non-regulated. Investors should use this only for educational purposes.

Subscription Status:

As of 05:13 PM on 13 September 2024, the IPO subscription status is 3.61 times. This reflects robust demand from Retail Investors and Qualified Institutional Buyers (QIBs).

How to Check Allotment Status:

Step 1: Go to the Registrar's Website.

Step 2: Select "Deccan Transcon Leasing IPO" from the dropdown list.

Step 3: Enter your application number, PAN, or DP Client ID.

Step 4: Click on "Submit" to see your allotment status.

Company's Financial Performance:

Deccan Transcon Leasing has demonstrated steady revenue growth and profitability. From FY22 to FY24, the company's revenue grew from ₹15,319.40 Lakhs to ₹18,061.76 Lakhs, reflecting its expanding logistics footprint. The company’s EBITDA also increased from ₹881.44 Lakhs in FY22 to ₹1,901.65 Lakhs in FY24, showcasing a significant improvement in operational efficiency.

Moreover, the company’s Profit After Tax (PAT) has risen from ₹519.10 Lakhs in FY22 to ₹1,181.89 Lakhs in FY24, a testament to its robust financial management and the strong demand for its services. With a pre-issue EPS of ₹6.87 and a post-issue EPS of ₹5.20, the company maintains a P/E ratio of 20.76x, which is competitive compared to the industry P/E ratio of 23.33x.

IPO Valuation Insights:

Deccan Transcon Leasing offers potential listing gains between 45% and 50%, with a return on capital employed (ROCE) of 41.43% and return on equity (ROE) of 45.03% in FY24, indicating sound financial health.

Investment Recommendation:

Based on its financial performance and growth prospects, Deccan Transcon Leasing IPO is well-positioned for investors seeking listing gains or long-term investment opportunities. However, it's crucial to consult with a financial advisor and perform detailed research before investing.

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