Tejas Cargo IPO: Review, Valuation, Date & GMP

Tejas Cargo IPO - Complete Overview

Tejas Cargo IPO under the SME IPO category is a book-build issue of Rs.105.84 Cr (63 lac Shares) by Tejas Cargo India Limited, which was incorporated in March 2021. It is a logistics company located in Faridabad, Haryana, extending its supply chain transport service by road across the length and breadth of India.

The express road transportation services under Full Truck Load (FTL) are rendered to several sectors, such as logistics, steel, e-commerce, FMCG, and white goods. The company operates all over India with the help of 23 branches for placement, loading, and unloading.

The company has-

• 1,131 vehicles (218 trailers and 913 container trucks) 32 to 40 ft in length and up to 42 tonnes in payload capacity.

• 218 trailers and 913 container trucks averaging 3.4 and 0.7 years, respectively.

• Covered more than 58,943 trips and 98,913 trips during Fiscal 2024.
  
  

Tejas Cargo India Limited IPO Overview

This new SME IPO comprises a wholly fresh issue of 63 lac Shares (Rs.105.84 Cr). The Tejas Cargo India Limited IPO date is from 14 Feb to 18 Feb 2025.

This upcoming IPO i.e. the Tejas Cargo IPO Price is Rs.160 to Rs.168 per Share. The listing date is 24 Feb 2025 at NSE and SME.

The GMP of current IPOs can be viewed on our Live IPO GMP page, where you can get the current SME IPO GMP of all open IPOs.

 

 

Click to open a Demat account and apply for the IPO.

Company Financial

(Amount in Cr)

 

Cash Flows

The cash flows for various activities are mentioned below:

(Amount in lac)

 

Industry-wise Revenue Breakdown 

(Amount in lac)

(Source: RHP)

 

 

The Objective of The Issue

• The purchase consideration for Mehru Electrical and Mechanical Engineers Private Limited is to be paid.

• To finance the capital expenditure requirements for the acquisition of equipment and plants.

• To finance inorganic expansion through strategic initiatives and unnamed acquisitions.

• General corporate purposes.

 

Peers of Tejas Cargo Ltd. 

 

Evaluation

The IPO price is Rs.160 to Rs.168 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.7.52 from the last year, the resulting P/E ratio is 22.34x.

Considering the weighted EPS of Rs.5.92 for the last three years, the P/E ratio is 28.37x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 19.48x.

In simple words, the P/E ratio of this IPO (22.34x), compared with the industry’s average P/E of 19.48x, has an overvaluation (on a P/E ratio basis only). Hence the price of the Share seems aggressively priced for the investors when considered based on the average P/E ratio of the industry.

 

 

IPO's Strengths

• In-house maintenance and direct procurement.

• Using high technology for operations and monitoring of its fleet.

• Heavy asset ownership model.

• Diversified customer base and revenue sources.

 

IPO’s Weaknesses

• Corporate, Promoters and one of the Directors face lawsuits. Adverse decisions in matters may lead to liabilities or penalties that could have an impact on the company’s operations.

• The company should set adequate internal control measures. Any failure in such internal controls or compliance systems could result in operational exposure of the company, financial fraud, etc.

• The company aims to grow via strategies like the transition towards a hybrid model and investment in technology. Nevertheless, anything less than effective implementation of these strategies will impact profitability and market position.

 

Tejas Cargo IPO GMP 

Tejas Cargo IPO GMP is Rs.0 as of 13 Feb 2025.

IPO Timetable (Tentative)

The Tejas Cargo IPO date is 14 Feb with tentative allotment on 19 Feb, refund initiation on 20 Feb, and listing on 24 Feb 2025.

 

Tejas Cargo IPO Details 

The IPO with a Face Value of Rs.10 per share, offers a total issue size of 63,00,000 Shares (Rs.105.84 Cr).

Tejas Cargo IPO Lot Details 

The Tejas Cargo IPO allows retail investors to invest in a minimum and maximum of 1 Lot (800 Shares) amounting to Rs.1,34,400 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (1600 Shares) amounting to Rs.2,68,800.

 

IPO Reservation (% of Net Issue)

 

 

Promoters And Management of Tejas Cargo Ltd.

• Chander Bindal

• Manish Bindal

 

IPO Lead Managers

New Berry Capitals Private Limited.

Dividend Policy

The company has not paid a dividend since its inception.

Conclusion

Tejas Cargo IPO is a fresh issue of Rs.105.84 Cr from the company that possesses good potential for growth owing to a large fleet with diversified revenue sources but has concerns regarding valuation and legal hazards. 

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 is NOT a buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always discuss with an eligible financial advisor before investing.

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