You may know that recently Destiny Logistics Infra has announced its IPO. The offer window opened on September 30, 2021, and will close on October 5, 2021. Underwriters have already shared all the details about the offer. So, if you want to know more about this September IPO and whether it is a good investment option, you have come to the right place. Check out all the details of Destiny Logistica Infra IPO here.
About the company – Destiny Logistics Infra
As you can guess from their name, Destiny Logistics Infra offers logistic services, mainly land-based transportation, via third-party service providers. They started doing business in 2011, promoted by Jugal Kishor Bhagat and Rekha Bhagat, and covers a wide range of services in packaging, loading, transporting, and unpacking goods as an end-to-end service provider. Their asset-light business model has provided Destiny Logistics Infra with an edge over competitors.
The company is from West Bengal, where it is a critical player in the domestic market. They also started a ‘Construction of Storm Water Drainage Scheme Project’ in the state worth Rs 58.27 crore.
The IPO will help promoters reduce their shareholding in the company, which is currently 99.72%. Post-IPO, the shareholding percentage will reduce to 64.79%.
Details of Destiny Logistics Infra IPO
The company has offered 2.69 million equity shares, carrying a face value of Rs 10, to raise a capital fund of Rs 5.39 crore. It is a fixed-type IPO for Rs 20 per share. Retail investors can apply for one lot consisting of 6000 shares or investment of Rs 120,000.
The company proposes to utilise the funds in the following categories,
- Working capital requirements
- Issue expenditures
- General corporate purposes
IPO dates at a glance
|IPO Open Date||September 30, 2021|
|IPO Closing Date||October 5, 2021|
|Basis of Allotment||October 8, 2021|
|Initiation of Refunds||October 11, 2021|
|Crediting Shares to Demat Account||October 12, 2021|
|IPO Listing||October 13, 2021|
The IPO will be listed under the NSE SME segment.
Financial performance of Destiny Logistic Infra
Before investing in any IPO, one must look in the company’s balance sheet to decide the merits of the initial public offer.
In terms of financials, Destiny Logistics Infra has exhibited robust performance. In FY 21, the company recorded a revenue earning of Rs 10.05 crore, increasing by 49.1% year-on-year from Rs 6.74 crore in FY20. The company’s EBITDA recorded a massive growth of 311.1% year-on-year to Rs 0.44 from Rs 0.07 crore in FY20.
- Total revenue in FY21 is Rs 10.05 crore
- Profit After Tax Rs 0.30 crore, increasing by 209.8% from FY20
- EBITDA growth is 311.4% to 0.44 from FY20
Merits of the offer
Based on the earning per share of Rs 6.06 in FY21 and IPO price of Rs 20, Destiny Logistics Infra IPO commands a PE ratio of 3.3x. Among its listed peers in the small-scale, small-cap group Aegis Logistics Ltd, Flomic Global Logistics Ltd., Allcargo Logistics Ltd., and Shreyas Shipping & Logistics Ltd. recorded PE of 38.8x, 26.9x, 18.9x, and 6.2x respectively.
In comparison, Destiny Logistics Infra IPO is reasonably priced.
Besides, the company exhibited strong financials in the past year. The Indian e-commerce business is expected to grow at 10-15% CAGR between 2021 and 2023 to amount to Rs 4.8 trillion. As the Indian online marketplace continues to expand, it will boost the logistics and transportation segment. Companies like Destiny Logistics Infra build a domestic logistics ecosystem that will eventually reduce dependency on air freight and improve road transportation. Moreover, the company has expanded to enter into infrastructure development, which increases its attraction among investors. However, one must remember that the Indian domestic logistics business is highly fragmented and without entry barriers, resulting in intense competition. Companies are continuously engaged in battles to keep their margin high. It could be a probable con in Destiny Logistics Infra’s offer.
The bottom line
The IPO has received 2.51 times subscription so far. The non-institutional and retail buyers segments have subscribed 2.06 and 2.95 times on October 4, 2021.
There are two days left if you want to apply for Destiny Logistics Infra IPO.
Frequently Asked Questions
What is the issue type of Destiny Logistics Infra IPO?
It is a fixed-type IPO with the price fixed at Rs 20 per equity.
What is the closing date of the IPO?
The subscription window will close on October 5, 2021.
What is the business type of Destiny Logistics Infra?
Destiny Logistics Infra, a domestic logistics services company, concentrating in Bengal, provides end-to-end logistics solutions through third-party service providers. It belongs to the small-scale, small-cap segment of industries.