What You Must Know About Ashapura Logistics IPO: Price Band ₹136 to ₹144 per share

About Ashapura Logistics Limited

Ashapura Logistics Limited, founded in April 2002, is a logistics company in India that specializes in cargo handling, freight forwarding, transportation, warehousing, distribution, and coastal transportation. With over 20 years of experience, the company offers comprehensive logistics services across India, leveraging technology to enhance efficiency and customer experience.

Ashapura Logistics has developed a software called IMPEX to manage its cargo handling and transportation operations and is working on another software for the transportation segment. Their technological capabilities include demand generation, tracking and tracing, fleet operations, price control, and creating a network of providers.

The company has three subsidiaries: Jai Ambe Transmovers Private Limited, Ashapura Warehousing Private Limited and Amanzi International Private Limited. Their freight forwarding team is based in Ahmedabad, with branches at major sea ports like Hazira, Mundra, Pipavav, Kandla, JNPT, and other inland container depots providing services to existing customers.

As of March 31, 2024, Ashapura Logistics has a fleet of 250 commercial trucks, with 181 owned by a subsidiary and 69 owned directly by the company. By July 2024, they run 7 warehouses with a total storage capacity of around 284,000 square feet. As of June 30, 2024, the company employs over 219 people, including more than 111 in operations and transportation.
 

Highlights of the Ashapura Logistics IPO

Here are some of the highlights of the Ashapura Logistics IPO.

•    The issue opens for subscription on 30 July 2024 and closes for subscription on 1 Aug 2024.
•   Ashapura Logistics is offering shares with a face value of ₹10 each. The price for these shares will be between ₹136 and ₹144.
•    Ashapura Logistics IPO includes only a fresh issue, with no Offer for Sale.
•    The company will issue 36.57 lakh new shares at the upper IPO price of ₹144 per share, raising a total of ₹52.66 crores.
•    Since there is no OFS, the overall IPO size will be equal to the fresh issue of ₹52.66 crores.
•    Like all SME IPOs, this one includes a market making component. Spread X Securities has been chosen as the market maker for this IPO.
•    The company has been promoted by Mr. Sujith Chandrasekhar Kurup and Mrs. Chitra Sujith Kurup. Currently Ashapura Logistics promoters hold 92.45% of the company's shares. After issuing new shares, their ownership percentage will drop to 67.51%.
• The company will use fresh issue funds for capital expenditure, Construction of warehouses, a portion of the IPO funds will also be allocated for general corporate needs and working capital requirement.
•   Beeline Capital Advisors Pvt Ltd is the lead manager for the Ashapura Logistics IPO. Kfin Technologies Limited is the registrar, and Spread X Securities is the market maker.

Ashapura Logistics IPO: Key Dates

The Ashapura Logistics IPO will open for subscription on July 30, 2024, and close on 1 Aug 2024. After the subscription period ends, the process for deciding how many shares each investor will receive will be completed on August 2, 2024. Refunds will be processed for those who do not receive shares on August 5, 2024, and the shares will be credited to applicant’s demat accounts on 5th August. The shares will be listed on the NSE SME Platform and available for trading starting August 6, 2024.

Ashapura Logistics IPO: Lot Sizes for Investment

The net offer will be allocated among QIBs or Qualified Institutional Buyers, retail investors and High Net Worth Individuals (HNIs) / Non Institutional Investors (NIIs). The breakdown of the overall IPO of Ashapura Logistics in terms of allocation to various categories are captured below.
 

Retail investors can invest in the IPO by purchasing a minimum of 1,000 shares, which requires an investment of ₹1,44,2000. This amount is also the maximum investment allowed for retail investors. HNIs and NIIs must invest in at least 2 lots, totaling 2,000 shares, with a minimum investment of ₹2,88,000. Qualified Institutional Buyers and High Net-Worth Individuals (HNIs/NIIs) can invest any amount they wish, as there is no maximum limit. The table below shows the different lot sizes available for various types of investors.
 

Ashapura Logistics: Financial Highlights

Here is the updated data table with the new values:

For the financial year 2024 (FY24), Ashapura Logistics Limited reported assets worth ₹12,644.88 lakh, showing an increase from ₹10,461.66 lakh in FY23 and ₹11,568.76 lakh in FY22. The company’s revenue for FY24 was ₹19,934.57 lakh, a slight decline compared to ₹22,260.31 lakh in FY23 and ₹22,713.84 lakh in FY22. Profit after tax in FY24 was ₹1,235.44 lakh, up from ₹946.98 lakh in FY23 and ₹788.26 lakh in FY22, indicating consistent growth in profitability.

Net worth of the company also increased, reaching ₹6,532.31 lakh in FY24, compared to ₹4,796.60 lakh in FY23 and ₹3,852.04 lakh in FY22. Reserves and surplus grew to ₹5,542.40 lakh in FY24 from ₹4,759.80 lakh in FY23 and ₹3,815.32 lakh in FY22. Total borrowings remained relatively low, at ₹12.90 lakh in FY24, up slightly from ₹9.87 lakh in FY23 and ₹8.17 lakh in FY22, reflecting prudent financial management.