Kaushalya Logistics LTD IPO-Review, Valuation, Date & GMP

Kaushalya Logistics Limited - Complete Overview

Established in 2007, Kaushalya Logistics Limited provides integrated logistics and clearing and forwarding (C&F) services to the cement industry in India. 

The company's headquarters are located in New Delhi, with a regional office in Chennai. Currently, it manages 70 warehouses for Dalmia Cement Bharat Limited in states such as Bihar, Tamil Nadu, and Kerala, among others.

Kaushalya Logistics operates in two major verticals, the first involves providing logistic support for handling and dealing in cement for dealers and customers of Dalmia Cement Bharat Limited. The second vertical focuses on retail businesses as preferred partners of a major online e-commerce platform for the sale of Electronics and White Goods.

Since January 2022, the company has been engaged with a major online e-commerce platform as a preferred supplier for white goods and electronics online sales. Additionally, the company owns 18 retail shops in a commercial project in Udaipur, generating steady rental income.

Kaushalya Logistics Limited operates in three business verticals:

1. Logistics & Transportation: Specializing in all surface transportation, including multi-model transportation by road/rail, offering pick-up, packing options, delivery, distribution, and complete documentation services.

2. Surface Transportation: Involving the transportation of client goods overland, the company receives goods from Cement Companies through Railways and arranges local transport to warehouses.

3. Warehousing & Distribution: While the warehouses are owned or leased by customers, the company manages warehouses at 70 locations nationwide. It provides comprehensive warehousing solutions, generating invoices and challans on the ERP system of customers through third-party transport operators. The company takes complete responsibility for the delivery service from the shipper's door to the consignee's door.

IPO Overview 

The Kaushalya Logistics Limited IPO date is scheduled to open for subscription from December 29, 2023, to January 3, 2024. This NSE SME IPO follows a Book Built Issue model.

The Kaushalya Logistics Limited IPO price is set in the range of Rs. 71 to Rs. 75 per share. The listing of this upcoming NSE SME IPO is anticipated on January 8, 2024.

The total issue size for this IPO is Rs. 36.60 Crores. Within this total issue, 35% is allocated to retail investors, 50% to institutional investors, and 15% to non-institutional investors.

 

Kaushalya Logistics Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	29 December 2023
IPO Closing Date	3 January 2024
IPO Allotment Date	4 January 2024
Refund initiation	5 January 2024
IPO Listing Date	8 January 2024

 

Kaushalya Logistics Limited IPO Details 

IPO opening & closing date	29 December 2023 to 3 January 2024
Face value	Rs.10 per share
Issue Price	Rs.71 to Rs.75 per share
Lot Size	1600 Shares
Price of 1 lot	Rs.120,000
Issue Size	4,880,000 shares (aggregating up to Rs.36.60 Cr)
Offer for sale	1,500,000 shares of Rs.10 (aggregating up to Rs.11.25 Cr)
Fresh issue	NA
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Skyline Financial Services Pvt. Ltd.

 

Detailed Video

 

Kaushalya Logistics Limited IPO Lot Details 

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	1 lot
Minimum Lot Investment (HNI)	2 lot

 

Kaushalya Logistics Limited IPO Reservation

Institutional share Portion	50%
Non-institutional share Portion	15%
Retail share Portion	35%

 

Company Financial

(Amount in Lakhs)

Period	30 Jun 2023	31 Mar 2023	31 Mar 2022
Total Assets	16,842.35	14,069.86	6,493.87
Total Revenue	57,053.16	63,216.41	6,358.92
PAT	214.65	705.87	376.61
Net worth	2,148.29	1,933.64	1,226.62
Reserve & Surplus	2,133.29	1,918.64	1,211.62
Total Borrowings	5,488.50	3,213.34	2,476.88

 

Bifurcation of revenue earned from the three business vertical

Vertical	June 30, 2023	FY 2022-23	FY 2021-22
Logistics	1,312.32	5193.82	3765.63
E-Commerce	55,525.09	57264.13	2195.62
Comm. Real Estate	48.57	347.58	141.94

 

 

Objective of the Issue 

The company will use the Net Proceeds to fulfil the following objectives:

• Settling Unsecured Loan.

• Meeting the company's working capital needs.

• Addressing general corporate requirements.

 

Promoters and Management of Kaushalya Logistics Limited

Uddhav Poddar is the promoter of Kaushalya Logistics.

Pre-issue Promoter shareholding	99.99%
Post-issue Promoter shareholding	72.98%

 

Peer Comparison 

According to the DRHP of Kaushalya LogisticsThere are no like-to-like comparable listed companies in India that are engaged in all aspects of the business that the company operate. Accordingly, it is impossible to provide an industry comparison concerning Kaushalya Logistics.

 

IPO's Valuations

The Kaushalya Logistics IPO price is set within the range of Rs. 71 to Rs. 75 per share.

 

Evaluation of P/E Ratio:

• Considering the FY23 EPS of Rs 470.58 from the last year, the resulting Post P/E ratio is 16.2x.

 

Dividend Policy 

The company has not distributed any dividends in the past, and any future dividend payments will depend upon the financial performance and earnings of the company.

 

IPO's Strengths 

Integrated end-to-end logistics services and solutions: The company offers end-to-end logistics services focusing on creating solutions that address the requirements of the clients.

Strong existing network: The company has tapped markets across the country by establishing a strong and symbiotic relationship through its network with various companies via its group companies.

Storage capabilities: The company has established a well-documented process for its warehouse management system to help its customers. The warehouse is equipped with all the requirements for proper handling, safety, and security of the cargo.

Strong knowledge and expertise: The company's promoters have strong knowledge of logistics and warehousing management.

 

 

IPO weaknesses 

• A significant portion of the company's profits relies on its logistics business, which is primarily dependent on a single major customer.

• The company requires various approvals, licenses, registrations, and permits for its business, and any failure to obtain or renew them promptly may negatively impact its operation.

• Negative cash flow has been experienced by the company in the past, and this trend may continue in the future.

• The company operates in a competitive environment.

• The company is reliant on third-party transportation providers for product delivery. Any failure on the part of these service providers to meet their obligations could have a material adverse effect on the company's business.

• Changes in customer preferences have the potential to impact business and financial conditions.

• The failure of the company to maintain the quality standards of its products could adversely affect its business.

 

IPO GMP Today 

The Last GMP of Kaushalya Logistics SME IPO GMP was Rs.45.

 

Conclusion 

The company operates in a highly competitive and fragmented market, and it has faced higher indebtedness and negative cash flows in the past. Nevertheless, the focus on infrastructure development and increased cement consumption work favourably for the company. The experienced management expresses optimism about the company's future. You may consider the IPO after a thorough evaluation for an optimal outcome.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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