Ashapura Logistics IPO: Review, Valuation, Opening Date & GMP

Ashapura Logistics Limited IPO - Complete Overview

Ashapura Logistics Limited IPO an SME IPO is a book-built issue of Rs.52.66 crore by Ashapura Logistics Limited which was established in 2009. Their area of expertise is:

• Taking care of and sending freight

• Transportation, encompassing third-party logistics ("3PL") and project logistics

• Distribution and storage

• Additional services, such as coastal movement.

Through its countrywide presence, comprehensive service options, emphasis on boosting service with technology, and substantial vehicle fleet network, the company offers unique logistics solutions.

For customs clearing, freight forwarding, supply chain management, warehousing, distribution, surface transportation, cargo handling, and third-party logistics services, the company holds an ISO 9001:2015 certification. The freight forwarding team has branches in seaports at ICDs like Hazira, Mundra, Pipavav, Kandla, JNPT, and others, and is headquartered in Ahmedabad. To their current clientele, they offer CHA and freight forwarding services.

The company owns 69 of the 250 commercial vehicles in its fleet directly, while the remaining 181 are held by its subsidiary as of March 31, 2024. The company oversees and runs 7 warehouses with a combined storage capacity of about 284,000 square feet as of July 2024. Over 219 individuals were employed by the company as of June 30, 2024, with over 111 working in the operations and transportation departments.

The company plans to launch its SME IPO on July 30, 2024.

 

 

Ashapura Logistics Limited IPO Overview

Ashapura Logistics Limited's IPO of Rs.52.66 crore comprises a wholly Fresh Issue of 36.57 lac Shares (amounting to Rs.52.66 crores). This SME IPO will be available to investors on July 30, 2024, and conclude on August 1, 2024. The anticipated listing date for the IPO is Tuesday, August 6, 2024, and will be held on the NSE and SME. The price range of each Share is Rs.136 to Rs.144.

If you want to apply for the IPO, Click Here to Open a Demat Account.

 

Company Financial

The company's revenue decreased by 10.45%, while profit after tax (PAT) increased by 30.46% during the financial years ending March 31, 2024, and March 31, 2023. 

Below is the synopsis of the company's financial data for the financial year ending March 31, 2024.

• The total revenue of the company is Rs.19,934.57 lac.

• The net worth of the company is Rs.6,532.31lac.

• The company's EBITDA is Rs.2,621.18 lac.

• The total assets of the company are Rs.12,644.88 lac.
  
  

(Amount in Lac)

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	12,644.88	10,461.66	11,568.76
Total Revenue	19,934.57	22,260.31	22,713.84
PAT	1,235.44	946.98	788.26
Net Worth	6,532.31	4,796.60	3,852.04
Reserves & Surplus	5,542.40	4,759.80	3,815.32
Borrowing	12.90	9.87	8.17

Revenue Bifurcation

Below is the revenue breakdown for various activities:

(Amount in Lac)

Net Cash Flow In Multiple Activities	30 Sep 2023	31 Mar 2023	31 Mar 2022
Net Cash Flow Operating Activities	599.09	1,557.40	2115.42
Net Cash Flow Investing Activities	-957.17	-405.73	-668.56
Net Cash Flow Financing Activities	771.04	-1,096.02	-1,473.90

Business Vertical-Wise Revenue Breakdown

(Amount in Lac)

Income From Different Verticals	31 Mar 2024	31 Mar 2023	31 Mar 2022
Cargo Handling	8,220.00	7,487.46	11,045.50
Transportation	10,709.38	12,512.41	11,301.72
Warehouse	951.09	847.87	349.31
Coastal Movement	20.44 1	333.91	-
Total	19,900.91	22,181.65	22,696.53

 

Geography-Wise Revenue Breakdown

States	Period Ended 31 Mar 2024	Period Ended 31 Mar 2023	Period Ended 31 Mar 2022
Gujarat	15,167.98	16,506.98	18,522.52
Karnataka	355.67	131.06	88.29
Tamilnadu	1,827.54	2,361.82	1,101.63
Maharashtra	2,549.71	3,181.80	2,984.09
Total	19,900.91	22,181.65	22,696.53

 

 

The Objective Of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• The firm needs to raise capital funds to buy trucks ("Vehicles") and related equipment ("Equipment").

• Building of warehouses at the Gujarat facility in Mundra.

• Financing the company's increasing need for working capital

• Corporate Purposes.

 

Peers Of Ashapura Logistics Limited

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
S J Logistics (India) Limited	10	20.03	22.62

 

Evaluation

The price of this IPO is Rs.136 to Rs.144 for each Share.

Evaluation Of P/E Ratio

Considering the FY ended 31 March 2024, with EPS of Rs.12.90 from the last year, the resulting P/E ratio is 11.16x.

Considering the weighted EPS of Rs.11.10 for the last three years, the P/E ratio is 12.97x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 22.62x.

Particulars	P/E Ratio (x)
Highest	22.62
Lowest	22.62
Average	22.62

In simple words, the P/E ratio of Ashapura Logistics Limited-IPO (11.16x), compared with the industry’s average P/E of 22.62x, has an undervaluation. Hence the price of the Share seems fairly priced for the investors when considered based on the average P/E ratio of the industry.

IPO's Strengths

• Scaled & integrated logistics operations.

• Asset-based business strategy translating into improved efficiencies.

• Effective Usage of Resources. 

• Long-standing partnerships with its clients.
  
  

IPO’s Weaknesses

• It handled activities from the sites for 41.30% of its income for the year ending March 31, 2024. The amount of cargo it handles might be negatively impacted if container traffic does not increase as expected or decreases.

• Its express logistics and cargo handling businesses depend on an effective transportation network; as a result, any shortcomings in a dependable transportation infrastructure might negatively impact its operations, financial situation, and the company.

• Any unfavorable event that hinders the expansion of trade volumes and freight rates might harm its operations, the financial situation, and the company.

• An increase in fuel prices also poses a risk to the company.

• Any interruptions that impair its capacity to make continuous use of its transportation network may cause delays, extra expenses, a decline in its reputation, or a reduction in its profitability.

 

IPO GMP Today

Ashapura Logistics Limited IPO’s latest GMP is Rs.135.

 

Ashapura Logistics Limited IPO Timetable (Tentative)

The IPO is scheduled from July 30 to August 1, 2024, with allotment on August 2, 2024 refund initiation on August 5, and listing on August 6, 2024.

Events	Date
IPO Opening Date	July 30, 2024
IPO Closing Date	August 1, 2024
IPO Allotment Date	August 2, 2024
Refund Initiation	August 5, 2024
IPO Listing Date	August 6, 2024

 

Ashapura Logistics Limited IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to start on July 30, close on August 1, and offer a total issue size of 3,657,000 Shares (aggregating up to Rs.52.66 Cr) comprising a whole fresh issue size of 3,657,000 Shares (totaling up to Rs.52.66 Cr).

IPO Opening & Closing date	July 30, 2024 to August 1, 2024
Face Value	Rs.10 per Share
Issue Size	3,657,000 Shares (totaling up to Rs.52.66 Cr).
Offer For Sale	NA
Fresh Issue	3,657,000 Shares (totaling up to Rs.52.66 Cr).
Listing At	NSE, SME
Issue Type	Book Built Issue IPO
Registrar	Kfin Technologies Limited

Ashapura Logistics Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1000 Shares) amounting to Rs.144000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2000 Shares) amounting to Rs.288000.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
HNI (Min)	2 Lots

 

Ashapura Logistics Limited IPO Reservation

Institutional Portion	50%
Retail Portion	35%
Non-Institutional Portion	15%

 

Promoters And Management of Ashapura Logistics Limited IPO

• Mr. Sujith Chandrasekhar Kurup 

• Mrs. Chitra Sujith Kurup

Pre-Issue Promoter Shareholding	92.45%
Post-Issue Promoter Shareholding	67.51%

 

 

Ashapura Logistics Limited IPO Lead Managers

• Beeline Capital Advisors Pvt Ltd.
  
  

Dividend Policy

The company has not paid any dividends for the Equity Shares.

 

Conclusion

The company has experienced negative cash flow in financing, and investing activities throughout the last few fiscal years. To achieve its goals, the company is currently launching an IPO for the general public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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