Ashapura Logistics Ltd IPO

Last Updated: 27 August 2024 3:01 PM by chetan

Ashapura Logistics IPO is a book built issue of Rs 52.66 crores. The issue is entirely a fresh issue of 36.57 lakh shares.

Ashapura Logistics IPO bidding started from July 30, 2024 and ended on August 1, 2024. The allotment for Ashapura Logistics IPO was finalized on Friday, August 2, 2024. The shares got listed on NSE SME on August 6, 2024.

Ashapura Logistics IPO price band is set at ₹136 to ₹144 per share. The minimum lot size for an application is 1000 Shares. The minimum amount of investment required by retail investors is ₹144,000. The minimum lot size investment for HNI is 2 lots (2,000 shares) amounting to ₹288,000.

The main objective of Ashapura Logistics Limited is to fund the purchase of trucks and equipment, construct warehouses in Mundra and Gujarat, and meet the incremental working capital requirements. 

1. Purchase of vehicles and equipment: The company intends to use INR 15.02 crores to acquire 30 commercial trucks and ancillary equipment. This investment aims to enhance logistics capacity, efficiency, and service levels and align with environmental sustainability goals. 

2. Capital Expenditure for warehouse construction: The company plans to use INR 16.40 crores to construct a 65,000-square-foot warehouse at Mundra Port. This expansion aims to support growing business operations and meet increasing client warehousing demands. 

3. To meet working capital requirements, the company will utilize INR 6.00 crores from the Net Proceeds of the Issue to meet its estimated Net Working Capital requirement of INR 82.89 crores for FY 2024-25, with the balance funded through borrowings and internal accruals. 

4. General Corporate Purposes: The company will deploy the balance of funds for general corporate purposes, including acquiring land, hiring resources, strategic alliances, funding growth, servicing debt, capital expenditures, working capital, and other operational needs.

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.