Deccan Transcon Leasing Limited is launching its IPO, which is a book-built issue with a total size of ₹65.06 crores. The IPO comprises a fresh issue of 55.24 lakh shares, raising ₹59.66 crore, and an offer for sale of 5 lakh shares, amounting to ₹5.40 crore.
The subscription period for the IPO opens on September 13, 2024, and closes on September 18, 2024. The allotment date is expected on September 19, 2024, with a tentative listing on NSE SME scheduled for September 23, 2024. The price band for the IPO is set at ₹102 to ₹108 per share.
Retail investors can apply for a minimum lot size of 1,200 shares, requiring an investment of ₹1,29,600. High Net-Worth Individuals (HNIs) need to invest in a minimum of two lots, totalling ₹2,59,200. Unistone Capital Pvt Ltd is the lead manager, with Link Intime India Private Ltd as the registrar and Giriraj Stock Broking as the market maker.
Industry Outlook:
- The global logistics market is projected to reach $6.55 trillion by 2027, growing at a 4.7% CAGR from 2022 to 2027, reflecting steady sector expansion.
- Indian ports handled 817.97 million tonnes of cargo in FY24, marking a 4.45% increase from FY23’s 784.31 million tonnes, showcasing significant growth in trade.
Deccan Transcon Leasing IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Funding capital expenditure requirements towards procurement of tank containers.
- Funding the working capital requirements of the company.
- General corporate purposes.
About Deccan Transcon Leasing Limited
Incorporated in February 2007, Deccan Transcon Leasing Limited specialises in providing tank containers on lease and comprehensive logistics and supply chain solutions across various sectors. The company offers a wide range of freight and shipping services, including domestic tank container logistics, tank fleet management, customs clearance, and Non-Vessel Operating Common Carriers (NVOCC) services.
As of July 31, 2024, Deccan Transcon Leasing has established a strong customer base, with over 100 clients having maintained long-term relationships for more than three years and serving over 884 customers in the past year alone. The company has a proven track record of serving over 5,000 customers globally, particularly in industries like chemicals, pharmaceuticals, FMCG, and agriculture, with a focus on speciality chemicals and petrochemicals in 40 countries.
With agencies across Europe, Asia, Oceania, South America, Africa, and the USA, the company delivers end-to-end logistics services supported by advanced tracking systems and digital platforms. The company employs 84 individuals as of July 31, 2024.
Peer Details
The companies considered by Deccan Transcon Leasing as its peers include:
- Lancer Container Lines Limited
- S J Logistics (India) Limited
How to Check the Allotment Status of the Deccan Transcon Leasing IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
Contact Details of Deccan Transcon Leasing IPO
- Registered office: Suite No 507, 5th floor, Image Capital Park, Image Garden Road, Madhapur, Shaikpet, Hyderabad- 500081, Telangana, India
- Phone: 040-40146828
- E-mail: compliance@deccantrans.com
IPO Financials
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Revenue from Operation (in ₹ lakh) | 15,255.71 | 17,959.66 |
| Profit After Tax (PAT) (in ₹ lakh) | 1,181.89 | 855.70 |
| Current Ratio (x) | 1.87 | 1.46 |
| Net Worth (in ₹ lakh) | 3,221.32 | 2,028.26 |
| Total Borrowings (in ₹ lakh) | 2,309.55 | 1,775.49 |
| Return on Equity (%) | 45.03% | 52.89% |
| Return on Capital Employed (RoCE) (%) | 41.43% | 43.22% |
| Earnings Per Share (in ₹) | 6.87 | 5.07 |
Know before investing
Strengths
6Over 5,000 customers served with end-to-end logistics solutions.
Long-standing customer relationships with 40% repeat business in FY24.
Promoters with a combined 60+ years of logistics industry experience.
Global reach with agents in 40 countries across six continents.
Expanding fleet of 2,500 tanks and 750 TEUs as of July 2024.
Advanced logistics technology for real-time tracking and operational efficiency.
Risks
6Leasing contributes 5.73% to revenue, with a 9.78% impact on margins.
Reliance on top 5 customers for 37.21% of revenue.
High fixed costs from container leases and operating expenses.
Dependent on the chemical sector for 94.27% of total revenue.
No long-term customer agreements, risking revenue fluctuations.
Exposed to foreign exchange fluctuations in US dollar transactions.
