Committed Cargo Care LTD. IPO - Review, Valuation, Date, & GMP

Committed Cargo Care Limited - Complete Overview

Established in 1998, Committed Cargo Care Limited is a third-party logistics provider specializing in the handling of import and export cargo. 

The company offers comprehensive logistics services, including cargo management solutions, order management, international freight management, customs clearance, and cross-border transportation, as well as the movement of heavy and over-dimensional cargo.

The company's clientele represents diverse sectors across India, including automotive and heavy engineering, telecommunications, food and agriculture, fast-moving consumer goods (FMCG), paint, handicrafts, e-commerce products, garments, pharmaceuticals, and dairy. 

Committed Cargo Care Limited engages in direct business relationships with both prominent local and global players from the industry, some of which it has maintained partnerships with for over two decades.

In the year 2023, the company achieved a revenue of 12,221.96 lacs.

 

What does the company do?

Committed Cargo Care Limited is a third-party logistics provider specializing in the handling of import and export cargo.

 

IPO Overview 

The Committed Cargo Care Limited IPO date is set to take place from October 6, 2023, to October 10, 2023. This SME IPO follows a Fixed Price Issue format. 

The anticipated listing date for this upcoming SME IPO is October 18, 2023. The total size of the IPO is Rs. 24.98 Crores. Of this total, 50% is allocated for other investors, and the remaining 50% is earmarked for retail investors.

The Committed Cargo Care Limited IPO price is Rs. 77 per share, and the registrar handling the issue is Bigshare Services Pvt Ltd.

 

Committed Cargo Care Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	6 October 2023
IPO Closing Date	10 October 2023
IPO Allotment Date	13 October 2023
Refund initiation	16 October 2023
IPO Listing Date	18 October 2023

 

Committed Cargo Care Limited IPO Details 

IPO Opening & Closing Date	6 October to 10 October 2023
Face value	Rs.10 per share
Issue Price	Rs.77 per share
Lot Size	1600 per share
Price of 1 lot	Rs. 123,200
Issue Size	3,244,000 Shares (aggregating up to Rs. 24.98 Cr)
Offer for sale	NA
Fresh issue	3,244,000 Shares (aggregating up to Rs. 24.98 Cr)
Listing at	NSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Bigshare Services Pvt. Ltd.

 

Committed Cargo Care Limited IPO Lot Details 

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

 

Committed Cargo Care Limited IPO Reservation

Other Investors Share Portion	50%
Retail Investors Share Portion	50%

 

Company Financial

Amount in Lakhs

Period	FY 23	FY 22	FY 21
Total Assets	4,015.13	3,309.84	3,035.65
Total Revenue	12,242.77	14,612.17	11,385.89
PAT	533.17	308.72	232.20
Net worth	2,884.79	2,351.63	2,042.90
Reserve & Surplus	2,127.83	1,594.67	1,285.94
Total Borrowings	67.34	14.69	31.42

 

Revenue generated from Top 10 Customers

Name of Customers	Amount (Rs. in Lakhs)
Customer 1	1413.24
Customer 2	1039.94
Customer 3	681.84
Customer 4	546.02
Customer 5	528.63
Customer 6	492.69
Customer 7	291.08
Customer 8	287.07
Customer 9	235.90
Customer 10	226.42
Total	5742.82

 

Objective of the Issue

The company intends to use the Net Proceeds for the following purposes:

• Fulfilling working capital needs.
• Addressing general corporate requirements.

 

Promoters and Management of Committed Cargo Care Limited

Rajeev Sharma, Nitin Bharal, Narendra Singh Bisht, Yash Pal Arora and Sonia Bharal are the promoters of the company.

Pre-issue Promoter Shareholding	100.00%
Post-issue Promoter Shareholding	73.39%

 

Peer Comparison 

Below are the listed peers of Committed Cargo Care Limited

Company Name	EPS (Diluted) (Rs.)	PE ratio	Total Income (Rs. in Lakhs)
Committed Cargo Care Limited	7.04	10.94	14,612.17
Jet Freight Logistics Limited	0.01	980.00	41,697.96
Total Transport Systems Limited	8.73	16.53	52,221.82
Tiger Logistics (India) Ltd.	21.94	18.85	43,334.78

 

IPO's Valuations

The IPO price is Rs. 77 per share, and with an EPS of Rs. 7.09, the P/E ratio used to evaluate the IPO valuation stands at 10.94.

 

Dividend Policy

According to the Committed Cargo Care IPO DRHP, the company has not distributed any dividends in the past, and the potential future dividend payments are based on the company's financial performance.

 

IPO's Strengths 

• Experienced Promoters and Management Team.
• Clearly outlined organizational structure.
• Comprehensive logistics solutions.
• Established supplier relationships.
• Efficient operational flow.

 

IPO Weaknesses

• The Company, its Promoters, and its Directors are currently involved in legal proceedings that could potentially have significant adverse outcomes.
• The Company requires specific statutory and regulatory approvals to conduct its operations.
• The company faces competition from numerous international and domestic third-party logistics firms.
• The Company has yet to file the necessary Form with the Registrar of Companies for the satisfaction of a Charge under the Companies Act.
• There have been instances of delayed filings with certain Regulatory Authorities in the past.
• The Group Company poses a conflict of interest as it operates in a similar business and may compete with the Company.
• Some of the corporate records and forms filed by the company with the Registrar of Companies cannot be traced.
• The company has experienced negative cash flows in previous fiscal years.
• The complex and widespread multi-location operations of the company expose it to various statutory, legal, and regulatory risks.

 

IPO GMP Today

The Latest GMP of Committed Cargo Care SME IPO is Rs. 15.

 

Conclusion 

Committed Cargo Care operates within a highly competitive industry. However, the company has demonstrated growth in both profitability and revenue. Furthermore, it operates within a growing sector, which is a positive indicator for future expansion. Investors, after conducting a thorough analysis, may consider investing in this offering for optimal results.

 

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.

 

 

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