Tejas Cargo India, a leading logistics service provider, is launching its IPO on February 14, 2025, with a price band set between ₹160 to ₹168 per equity share. The IPO will remain open for subscription until February 18, 2025, with allotment expected on February 20, 2025. The company will be listed on the NSE SME segment with a tentative listing date of February 24, 2025.

Key IPO Details

The Tejas Cargo India IPO is a book built issue offering 63.00 Lakh shares with a total value of ₹105.84 Crores. The market capitalization of the company, based on the IPO price of ₹168 per share, will be approximately ₹401.39 Crores. The lot size for the IPO is set at 800 shares, and retail investors must invest a minimum of ₹1,34,400. For High-Net-Worth Individuals (HNIs), the minimum investment is ₹2,68,800 for 2 lots.

Financials and Performance

Tejas Cargo India provides express supply chain transportation services across a variety of sectors including logistics, steel, cement, e-commerce, FMCG, and more. The company’s revenue for the fiscal year 2024 reached ₹42,259.06 Lakh, with a profit after tax of ₹1,322.22 Million. The company’s EBITDA for FY2024 stood at ₹6,903.16 Lakh, showcasing consistent growth in operations.

Key performance indicators include a pre-issue P/E ratio of 0.08x and a post-issue P/E ratio of 30.36x, slightly above the industry’s average P/E of 19x. The company’s ROE stands at 38.62%, indicating a strong financial performance despite the high valuation. Annualized EPS stands at ₹13.62, and the PE ratio is 12.33x.

IPO Subscription and Grey Market Premium (GMP)

The Grey Market Premium (GMP) of Tejas Cargo India IPO is currently reported at ₹0, indicating low investor demand in the grey market and potentially limited listing gains. As of 12:00 PM on February 14, 2025, the IPO has been subscribed 0.05 times on its first day, suggesting moderate investor interest.

IPO Objectives

The net proceeds from the Tejas Cargo India IPO will be used for various purposes, including:

1. ₹3,176.29 Lakhs for the purchase of additional trailers.
2. ₹3,000.00 Lakhs to meet working capital requirements.
3. ₹1,500.00 Lakhs for repayment of borrowings.
4. General corporate purposes, which will support the company's overall growth and operational efficiency.

Tejas Cargo India IPO Review

Tejas Cargo India’s IPO is fully priced at a PE ratio of 30.36x, which is above the industry average of 19x, suggesting that the company may be priced on the higher side for listing gains. Despite a solid financial performance, the GMP trend shows a neutral sentiment in the market, meaning investors should approach cautiously and focus on long-term growth potential rather than short-term gains.

The Upcoming IPOs in this week and coming weeks are Royalarc Electrodes Limited, Tejas Cargo India Limited, Quality Power Electrical Equipments.

The Current active IPO are  L.K. Mehta, Shanmuga Hospital, PS Raj Steels, Voler Car, Maxvolt Energy, Hexaware Technologies.

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