Tejas Cargo India Limited SME Initial Public Offering to open on Friday 14, 2025 price band set at ₹160 to ₹168 per Equity Share

• Price Band of ₹160 - ₹168 per equity share bearing face value of ₹10/- each ("Equity Shares")
• Bid/Offer Opening Date – Friday, February 14, 2025 and Bid/Offer Closing Date – Tuesday, February 18, 2025.
• Minimum Bid Lot is 800 Equity Shares and in multiples of 800 Equity Shares thereafter.
• The Floor Price is 16.00 times the face value of the Equity Share and the Cap Price is 16.80 times the face value of the Equity Share

MUMBAI, India, Feb. 13, 2025 /PRNewswire/ -- Tejas Cargo India Limited ("Company") is engaged in the business of providing long haul supply chain transportation services by road across India. They offer express supply chain transportation services by road under Full Truck Load ("FTL"), to a diverse range of companies who are inter alia engaged in the logistics, steel and cement, e-commerce, industrial & chemicals, FMCG and white goods sectors. The company has fixed the price band of ₹160 to ₹168 per Equity Share of face value ₹10/- each for its maiden initial public offer.

The public issue is entirely a fresh issue of 63,00,000 equity shares with no offer-for-sale (OFS) component.

The company has reserved 63,200 equity shares under the employee reservation portion for subscription by eligible employees and 3,15,200 equity shares is reserved for market maker reservation portion.

Proceeds from the fresh issue to the extent of ₹31.76 crore will be utilized for purchase of additional trailers for the Company; ₹30 crore for meeting working capital requirements; ₹15 crore for repayment and/or pre-payment, in full or part, of certain borrowings availed by the Company; and general corporate purposes.

The company has facilities for fleet placements, and fleet loading, and unloading through a network of 23 branches. Nine of these branches are also capable of managing operations and performing fleet maintenance and repairs. To service and maintain its fleet, it maintains a specialized three-acre in-house maintenance facility manned by automobile service professionals. Additionally, the company holds a PESO license for storing petroleum, and to run a petroleum distribution station for captive use. This strategic setup ensures access to fuel at competitive prices, optimizing fuel costs.

They have completed on a pan India basis over 98,913 trips and 58,943 trips during Fiscal 2024 and for the six months period ended September 30, 2024 respectively. It derives more than 98% of their revenue by providing long haul supply chain transportation services including shipment planning, route optimisation, fleet selection, documentation, tracking, communication and coordination and performance evaluation.

As on October 31, 2024 it has a fleet size of 1,131 vehicles consisting of 218 trailers and 913 container trucks, equipped with Internet of Things ("IoT")-based solutions such as Geo Fencing, Centralised Digital Locking, GPS and SIM based tracking, Advance Driver Assistance System ("ADAS")/Driver State Monitoring ("DSM") as well as AI-powered rear camera technology.

Tejas Cargo's revenue from operations increased by 9.83% to ₹419.33 crore for the year ended March 31, 2024 from ₹381.78 crore for the year ended March 31, 2023 primarily due to increased number of placements. Profit after tax increased from ₹9.86 crore for the year ended March 31, 2023 to ₹13.22 crore for the year ended March 31, 2024.

For the six months ended September 30, 2024 revenue from operations stood at ₹252.61 crore and profit after tax stood at ₹8.74 crore.

The Issue is being made through the Book Building Process, wherein not more than 50% of the Net Issue shall be allocated to Qualified Institutional Buyers, not less than 15% of the Net Issue shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Net Issue shall be available for allocation to Retail Individual Bidders.

New Berry Capitals Private Limited is the sole book-running lead manager. The Company's equity shares are proposed to be listed on the SME Platform of NSE ("NSE Emerge").

For Red Herring Prospectus please follow the link: https://tinyurl.com/2bcye7jy