Apana Logistics IPO

Technology Adoption: The logistics sector is shifting from traditional operations towards a technology-enabled and integrated ecosystem.  

Improved Logistics Performance: India improved its World Bank Logistics Performance Index ranking from 44th in 2018 to 38th in 2023, supported by investments in physical and digital infrastructure.  

National Logistics Policy: The National Logistics Policy, launched in 2022, aims to reduce logistics costs from around 13–14% of GDP and improve efficiency.  

PM GatiShakti: The National Master Plan integrates 16 central ministries, including Railways and Road Transport, to improve multi-modal infrastructure planning.  

Road & Logistics Infrastructure: India’s national highway network has expanded significantly since 2014, while 35 Multi-Modal Logistics Parks (MMLPs) have been planned to strengthen freight connectivity.  

Maharashtra: Classified as an Achiever among coastal states, Maharashtra benefits from road, rail and first- and last-mile connectivity. Projects such as the 170-km Pune Ring Road and planned logistics parks are expected to support freight movement.  

Delhi & Haryana: Both states are classified as Achievers among landlocked states, supported by urban logistics hubs, single-window clearances and policies promoting electric vehicles. 

Diverse Service Portfolio: Provides container handling, road transportation, cargo handling, and truck-trailer repair and maintenance services.  

Long-Term Customer Relationships: In FY25, 81.18% of revenue came from customers associated with the company for more than 10 years. The top five customers recorded 100% retention.  

Tendering Capabilities: Its financial, technical and asset credentials support participation in tenders floated by government and semi-government entities.  

Improving Profitability: EBITDA increased at a 25.63% CAGR from ₹310.32 lakh in FY23 to ₹615.28 lakh in FY25. The company also maintained relatively low leverage. 

Experienced Management: The promoter and management team has more than 33 years of combined industry experience, supporting its expansion into 3PL and customised supply chain services.  

Expand Existing Customer Relationships: Plans to increase its share of customers’ logistics spending by securing contract renewals and offering end-to-end supply chain solutions.  

Benefit from Infrastructure Development: Government initiatives such as PM GatiShakti, National Logistics Policy, Dedicated Freight Corridors and new ports and ICDs could create opportunities for logistics service providers.  

Increase Owned Equipment: Plans to use IPO proceeds to purchase up to 8 reach stackers, which could reduce reliance on hired equipment and support tender requirements.  

Leverage Technology: Uses GPS-enabled tracking and proprietary software to monitor fleet maintenance, fuel consumption and preventive maintenance requirements. 

High Customer Concentration: The top five customers accounted for 98.85% of operating revenue in FY25, with one customer contributing 54.71%, creating significant dependence on key clients.  

Dependence on Third-Party Providers: Payments to third-party operators and suppliers represented 71.27% of operating revenue in FY25. The absence of formal agreements with several providers could increase disruption and pricing risks.  

Geographical Concentration: Maharashtra and Karnataka contributed 44% and 41% of FY25 revenue, respectively, exposing the company to regional disruptions.  

Litigation and Regulatory Proceedings: The company, its promoters and directors are involved in various legal, tax and regulatory proceedings.  

Tax Disputes: As of March 31, 2025, the company had outstanding contingent tax demands of ₹66.20 lakh, including GST and income tax/TDS demands.  

Promoter Legal Proceedings: A cheque-bounce case under the Negotiable Instruments Act is pending against one of the promoters.  

Equipment-Related Litigation: The company has filed a civil suit seeking ₹1.60 crore in damages over alleged damage to hydraulic equipment caused by low-quality lubricants.  

Incomplete Corporate Records: Certain historical corporate records and regulatory documents could not be traced, while some registrations continue to carry the company’s former name.  

Promoter Conflict of Interest: Promoter and Chairman & Managing Director Pratyaksh Sureka has interests in Freighttrans Logistics Private Limited and Gocon Logistics Private Limited, which operate in the same business.  

Working Capital Pressure: Customer credit periods of up to 90 days can put pressure on the company’s working capital and cash flows.  

Limited Intellectual Property: The company does not currently own registered trademarks or logos, with its trademark applications still under process.  

Cargo Verification Risk: The company does not independently verify container contents, exposing its vehicles and equipment to potential seizure if they carry hazardous, restricted or illegal materials. 

Apana Logistics IPO DRHP 

Corporate Makers Capital Limited 

Contact Number: 040-79615565 

Email Address: afl.ipo@kfintech.com