Zeal Global Services Ltd IPO

Incorporated in February 2014, Zeal Global Services provides logistics solutions in the Air Cargo Industry. The company has been operating as General Sales and Service Agent (“GSSA”) and sales partner for airlines. 

Zeal Global Services works with an approach to offer economical solutions to their client's freighting needs through - excessive aircraft, load and destination compatibility analysis to suit the ever-changing needs of various industries like pharmaceuticals, fashion, automotive, etc. The company offers services in India, the Middle East, Malaysia, China, Singapore and Sri Lanka. 

Zeal Global Services Limited IPO Details

Zeal Global Services is a 100% fresh IPO worth ₹36.46 crore. The issue comprises 35,40,000 shares and is priced at ₹103 per share. Retail investors can bid for the Zeal Global Services Limited IPO, which will open on July 28, 2023. Zeal Global Services Limited’s IPO will list on the NSE exchange on August 9, 2023.

Zeal Global Services Limited IPO Objectives 

The objectives of Zeal Global Services Limited's IPO are listed below:

• To fund the working capital requirement of the company 
• For investments in subsidiaries for business expansion 
• To fund the part repayment of debt
• To meet the issue expenses 
• To meet the general corporate purposes

Noteworthy Highlights of Zeal Global Services Ltd

• Zeal Global Services Ltd offers customised solutions to their clients irrespective of their business size. 
• The company made a strategic investment and acquired 33% of the stake in the Joint Venture, Teleport Commerce IN Private Limited.
• In India, there are 300 IATA (International Air Transport Association) agents, and 250 of them are onboarded with Zeal Global Services, currently. 

Peer Details

Currently, there are no listed peers for Zeal Global Services that offer the same business.

Zeal Global Services Ltd. Financials

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Strengths

1. The net worth of the company more than doubled from ₹603.09 on March 31, 2021, to ₹2,115.62 on January 31, 2023.

2. The company’s profit after tax increased highly from ₹188.32 on March 31, 2021, to ₹838.40 on January 31, 2023.

Risks

1. Though the company served ~200 IATA agents in FY 2022-23, the company has no long-term agreement with them.

2. Though the company has clients in other regions, it is focused on Delhi only. Expanding to other cities may pose risks that can impact the revenue.