Tejas Cargo India Limited, a logistics company based in Faridabad, Haryana, debuted on the NSE SME exchange at ₹175 per share, reflecting a 4% premium over its IPO price of ₹168. The IPO raised ₹105.84 crores through a fresh issue of 63 lakh shares. The subscription period ran from February 14 to February 18, 2025, with allotment finalized on February 20, 2025. The IPO was subscribed 1.14 times on its final day.

Tejas Cargo India specializes in long-haul supply chain transportation services, offering Full Truck Load (FTL) logistics solutions to industries including steel and cement, e-commerce, FMCG, and chemicals. The company provides services such as shipment planning, route optimization, fleet selection, documentation, tracking, and performance evaluation.

The price band for the IPO was set at ₹160-₹168 per share, with a market capitalization of ₹401.39 crores at the IPO price. The minimum investment required for retail investors was ₹1,34,400 for a single lot of 800 shares, while High-Net-Worth Individuals (HNIs) needed to invest a minimum of ₹2,68,800 for two lots.

Financials and Market Performance

Tejas Cargo India secured ₹29.82 crores from anchor investors at a price of ₹168 per share, with 17,75,200 equity shares allocated to them. The Grey Market Premium (GMP) remained at ₹0 before listing, indicating stable demand.

The company's revenue grew at a CAGR of 41.97%, reaching ₹42,259.06 lakh in Fiscal 2024, while EBITDA increased at a CAGR of 187.05% to ₹6,903.16 lakh. Profit after tax rose to ₹1,322.22 lakh, reflecting a strong financial position.

Industry Overview

India's third-party logistics (3PL) market is expanding due to the e-commerce boom and government initiatives such as GST and the National Logistics Policy. The country handles 4.6 billion tonnes of goods annually, with 71% transported by road. The logistics industry is expected to grow at a CAGR of 13.2%, reaching ₹3,278.2 billion by 2029.

Technological advancements, including AI, IoT, and digital tracking, are transforming the sector. The demand for last-mile delivery, cold chain logistics, and fleet optimization is rising, positioning Tejas Cargo India for further growth.

Business Strengths and Strategies

Tejas Cargo India operates a heavy asset ownership model, with 1,131 vehicles, including 218 trailers and 913 container trucks. A proprietary technology platform enhances fleet management, ensuring real-time tracking, route optimization, and efficiency.

Future growth strategies include transitioning to a hybrid fleet model, expanding into rail logistics, investing in technology, and diversifying into industries like pharmaceuticals and waste management. The company is also planning to enter secondary logistics and warehousing to enhance supply chain solutions.

Risks and Challenges

Despite strong financial performance, Tejas Cargo India faces challenges such as dependence on road transport, reliance on outsourced drivers, rising maintenance costs, and supply chain disruptions due to OEM dependence. Addressing these risks through fleet expansion, technology upgrades, and diversification will be key to sustained growth.

With a strategic focus on technological advancements and expansion, Tejas Cargo India aims to strengthen its position in India's fast-growing logistics market. The listing at a premium price indicates positive investor sentiment, reinforcing confidence in the company's future prospects.

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