Tejas Cargo India Limited, a logistics company based in Faridabad, Haryana, is set to debut on the NSE SME platform on February 24, 2025. The IPO subscription period ran from February 14 to February 18, 2025, and the final allotment of shares was confirmed on February 20, 2025.

The IPO, worth ₹105.84 Crores, consisted entirely of a Fresh Issue of 63 lakh shares, with a price band set at ₹160-₹168 per share. New Berry Capitals Private Limited acted as the Book Running Lead Manager, while Bigshare Services Pvt Ltd was the registrar.

IPO Subscription and Market Sentiment

The IPO saw modest investor interest, being subscribed 1.14 times on its final day. Retail and institutional investors participated in the offer, but the Grey Market Premium (GMP) remained at ₹0, indicating no significant listing gains.

Despite raising ₹29.82 Crores from Anchor Investors at a fixed price of ₹168 per share, market sentiment around the IPO remained neutral, with no substantial aftermarket demand before listing.

Financial Performance and Company Overview

Founded in 2009 as Trans Cargo India, Tejas Cargo India specializes in long-haul logistics and Full Truck Load (FTL) transportation. The company caters to multiple industries, including steel, cement, e-commerce, FMCG, and chemicals.

Financially, Tejas Cargo India has shown steady growth, with revenues of:

• ₹42,259.06 Lakh in FY24,
• ₹38,437.46 Lakh in FY23,
• ₹20,967.03 Lakh in FY22.

Profit After Tax (PAT) figures reflect a similar trend:

• ₹1,322.22 Million in FY24,
• ₹985.85 Million in FY23,
• ₹315.54 Million in FY22.

Key financial ratios include:

• Pre-issue EPS: ₹2,206.83
• Post-issue EPS: ₹5.53
• ROCE: 28.30%
• ROE: 38.62%
• Industry P/E Ratio: 19x
• Post-issue P/E Ratio: 30.36x

IPO Valuation and Investment Outlook

With a market capitalization of ₹401.39 Crores at the upper price band, the company’s valuation appears fully priced. Analysts believe that, while Tejas Cargo India has strong revenue growth, the higher P/E ratio compared to the industry average makes the IPO less attractive for short-term gains.

Should You Invest?

Given the flat GMP and fair valuation, investors looking for short-term gains may not see significant upside from the IPO listing. However, long-term investors who believe in the growth of the logistics sector may consider holding the stock for future growth potential.

With the listing set for February 24, 2025, market participants will be closely watching how Tejas Cargo India performs on its debut trading session.

The Upcoming IPOs in this week and coming weeks are Nukleus Office, Shreenath Paper.

The Current active IPO are Beezaasan Explotech, Swasth Foodtech, HP Telecom India.

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