Deccan Transcon Leasing IPO: Review, valuation, Date & GMP

Deccan Transcon Leasing IPO-Complete Overview

Deccan Transcon Leasing IPO an SME IPO is a book built issue of Rs.65.06 crore by Deccan Transcon Leasing Ltd. which was founded in February 2007. The company provides logistical and supply chain solutions, as well as tank container leasing, to clients across a range of industries.

In addition to domestic tank container logistics, tank fleet management, customs clearance and transportation, and Non-Vessel Operating Common Carriers (NVOCC) services, the company provides full freight and shipping solutions.

Over 100 clients who had been with the company for more than three years were counted as long-term partners as of July 31, 2024. In addition, over 884 clients have been handled by the business in the past year. Serving more than 5,000 consumers is a solid track record for the business.

The services provided by the company fall into two groups:

• Container Leasing

• Shipping and Freight Forwarding.

The company primarily provides services to clients in the FMCG, agricultural, chemicals, pharmaceuticals, and others emphasizing petrochemicals and specialized chemicals throughout 40 Nations are the company's primary clientele. 

The United States, Europe, Asia, Oceania, South America, Africa, and other locations are home to the company's agencies. Under an agency arrangement, these organizations manage logistics for the movement of cargo both inbound and outward. They are in charge of carrying out all tasks and paperwork required for the transportation of freight between the aforementioned areas.

This new SME IPO is to be launched on 13 September 2024, and its ‘initial public offering’ will end on 19 September 2024.

 

Deccan Transcon Leasing IPO Overview

The Rs.65.06 crore Deccan Transcon Leasing Ltd. IPO consists of a combination of a fresh issue of 55.24 lac Shares (Rs.59.66 crore) and an offer for sale (OFS) of 5 lac Shares (Rs.5.40 crore).

This SME IPO date is from September 13-September 19, 2024. The expected IPO listing date is Tuesday, September 24, 2024, on NSE and SME. Deccan Transcon Leasing IPO price band is Rs.102 to Rs.108 for each Share.

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

Company Financial

The company's revenue fell by 15% and PAT rose by 38% between the FYs concluded 31 March 2024 and 31 March 2023.

Below is the synopsis of the company's financial data for the period that concluded 31 March 2024.

• The total assets of the company are Rs.7,721.58 lac.

• The total revenue of the company is Rs.15,363.76 lac.

• The company’s PAT is Rs.1,181.89 lac.

• The net worth of the company is Rs.3,221.32 lac.

• The company’s EBITDA is Rs.1,901.65 lac.

(Amount in lac)

 

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Service-wise Revenue Breakdown During The Last Three Fiscals 

(Amount in lac)

 

Continent-wise Revenue Breakdown During The Last Three Fiscals

 (Amount in lac)

 

Geography-wise Revenue Breakdown of Sales During The Last Three Fiscals

(Amount in lac)

 

The Objective of The Issue

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

• Financing the necessary capital expenditures for the purchase of tank containers

• Meeting the company's needs for working capital

• General corporate purposes.

 

Peers of Deccan Transcon Leasing Ltd. 

Note: The basic EPS of the peers is for the financial year ending 31 March 2024.

The peers' P/E Ratio is computed based on the closing market price of the Share as of 27 August 2024.

 

Evaluation

Deccan Transcon Leasing IPO Share price is Rs.102 to Rs.108 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.6.87 from the last year, the resulting P/E ratio is 15.72x.

Considering the weighted EPS of Rs.5.64 for the last three years, the P/E ratio is 19.15x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 23.33x.

 

 

IPO's Strengths 

• Enduring track record in business

• Established customer connections

• Its promoters have strong knowledge and competence

• Worldwide coverage via an agent network

• Capacity to offer comprehensive logistical solutions.

 

IPO’s Weaknesses

• To efficiently run its logistics operations, it relies a lot on outside agents, suppliers, and service providers. Any shortcomings in their services or a break in their communication with them could cause to have operational disruptions which could be detrimental to the company.

• The chemical and petrochemical industries, as well as associated chemical product companies, are the main sources of income. The company generated roughly 94.27%, 97.87%, and 98.90% of its revenue for the fiscal years 2024, 2023, and 2022, respectively, from shipping and freight services to clients in the chemical industry. A decline in its customer base, delays, and payment defaults are just a few of the serious disruptions that could result from any negative effects or slowdown in this particular industry. Consequently, this would affect the company’s operations and revenue.

• Limitations on purchases from China could harm its cash flows, financial performance, and prospects.

• Processing, handling, and storing hazardous chemical goods and oil present dangers to its products, workers, vessels, and the environment, which could negatively impact its financial performance and business operations.

• The failure to secure profitable contracts for the use of its containers could harm its operational outcomes. This will hinder the company from making profitable use of its fleet, which could hurt its bottom line.

• The company had a negative cash flow from its financing and investing activities in the past FYs, and sustained negative cash flow could impact its growth and business.
  
  

Deccan Transcon Leasing IPO GMP Today

Deccan Transcon Leasing IPO GMP is Rs.30 as of 11 September 2024. With a price band of Rs.108, the Deccan Transcon Leasing IPO listing price (estimated) is Rs.138.

 

IPO Timetable (Tentative)

The Deccan Transcon Leasing IPO date is from September 13 to September 19, 2024, with allotment on September 20, refund initiation on September 23, and the Deccan Transcon Leasing IPO listing date on September 24, 2024.

 

Deccan Transcon Leasing IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to start on September 13, 2024, close on September 19, 2024, and offer a total issue size of 6,024,000 Shares (aggregating up to Rs.65.06 Cr.).

 

 Deccan Transcon Leasing IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1200 Shares) amounting to Rs.1,29,600 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2,400 Shares) amounting to Rs.2,59,200.

 

Deccan Transcon Leasing IPO Reservation

 

 

 

Promoters And Management of Deccan Transcon Leasing Ltd.

• Jaidev Menon Parath

• Karthika Menon

• Miriyala Shekhar

• Pranav Jaidev

• Navaneeth Jaidev.

IPO Lead Managers

• Unistone Capital Pvt Ltd.

Dividend Policy

The company has not paid dividends since its incorporation.

Conclusion

The company has experienced negative cash flow in financing and investing activities in the last 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 upcoming IPO since it will give you reliable data 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: 

The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

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