Tejas Cargo India Ltd is a logistics company based in Faridabad, Haryana, specializing in long-haul supply chain transportation services by road across India. The company offers express Full Truck Load (FTL) services to various sectors, including logistics, steel, e-commerce, FMCG, and white goods.The company is launching its Tejas Cargo India Ltd IPO with the following details:
Tejas Cargo India Ltd IPO Details:
- Opening Date: February 14, 2025
- Closing Date: February 18, 2025
- Allotment Date: February 19, 2025
- Listing Date: February 24, 2025
- Issue Size: The company plans to raise approximately ₹105.84 crores through the IPO, comprising a fresh issue of 63 lakh equity shares.
- Price Band: The price band for the IPO is set between ₹160 and ₹168 per share.
- Lot Size: Investors can bid for a minimum of 800 shares, with subsequent bids in multiples of 800 shares.
Tejas Cargo India Ltd IPO Financial Highlights:
Tejas Cargo India Ltd has demonstrated growth in its top-line revenues over recent periods. However, the significant increase in bottom-line profits from FY23 onwards has raised questions about the sustainability of these earnings. Based on recent financial performance, the IPO appears to be aggressively priced. Investors should consider this as a high-risk, low-return opportunity.
Tejas Cargo India Ltd IPO Company Overview:
Incorporated in March 2021, Tejas Cargo India Ltd provides technology-enabled logistics services, including shipment planning, route optimization, fleet selection, documentation, tracking, communication, coordination, and performance evaluation. As of June 30, 2024, the company conducted over 80% of its trips using owned fleets, with the remaining undertaken through hired fleets on an ad-hoc basis.
Investment Considerations:
While Tejas Cargo India Ltd operates in a competitive and fragmented logistics sector, the company’s recent financial performance and aggressive pricing of the IPO warrant cautious consideration. Potential investors should assess the company’s growth prospects, financial health, and the inherent risks associated with the logistics industry before making investment decisions.
About Tejas Cargo India Ltd
Tejas Cargo India Ltd is a logistics company that offers road transportation services across India. It specializes in long-haul supply chain transportation, providing express Full Truck Load (FTL) services to various sectors. The company’s services cater to industries such as logistics, steel, e-commerce, FMCG, and white goods, with a focus on delivering goods efficiently across the country.
Key Highlights:
- Incorporation: Tejas Cargo India Ltd was incorporated in March 2021.
- Services: The company provides a wide range of services, including shipment planning, route optimization, fleet selection, documentation, tracking, communication, and performance evaluation. These services are designed to streamline the logistics process for clients across India.
- Fleet: As of June 2024, Tejas Cargo India Ltd operates primarily with an owned fleet (over 80% of trips), and the remaining trips are carried out through hired fleets on an ad-hoc basis. This model helps the company maintain control over operations while also offering flexibility when needed.
- Technology: The company uses technology to manage its logistics and optimize its services, ensuring that customers get fast and reliable transportation solutions.
- Growth: Tejas Cargo India has shown significant growth, both in terms of its revenue and in its ability to expand its market presence in the logistics sector.
Tejas Cargo is now preparing for an initial public offering (IPO) to raise funds for its future expansion and operational development. The company aims to use the proceeds to strengthen its market position, improve its services, and invest in technology for continued growth.
Future Outlook:
The logistics sector is growing rapidly, especially with the boom in e-commerce and the increasing demand for efficient transportation services. Tejas Cargo India Ltd aims to capitalize on this growth by expanding its footprint across India and enhancing its service offerings.
Tejas Cargo India Ltd IPO Lot Size
The Tejas Cargo India Ltd IPO has the following lot size details:
| Investor Type | Lots | Shares | Minimum Investment (₹) |
| Retail (Minimum) | 1 | 800 shares | ₹1,28,000 |
| Retail (Maximum) | 1 | 800 shares | ₹1,28,000 |
| HNI (Minimum) | 2 | 1,600 shares | ₹2,68,800 |
- Retail Investors can bid for a minimum of 800 shares with a minimum investment of ₹1,28,000.
- HNIs can bid for a minimum of 1,600 shares, with a minimum investment of ₹2,68,800.
The bids must be placed in multiples of 800 shares.
Tejas Cargo India Ltd’s Company Financials
Here is a summary of Tejas Cargo India Ltd’s financials based on the available data:
Tejas Cargo India Ltd – Financials (in ₹ lakhs)
| Particulars | FY 2023 | 2024 | H1 FY 2025 |
| Revenue | ₹38,178.52 lakhs | ₹41,932.61 lakhs | ₹25,260.73 lakhs |
| Profit After Tax (PAT) | ₹985.85 lakhs | ₹1,322.22 lakhs | ₹874.50 lakhs |
| Total Assets | ₹17,957.02 lakhs | ₹19,221.03 lakhs | ₹18,092.12 lakhs |
| Net Worth | ₹5,406.91 lakhs | ₹6,318.56 lakhs | ₹6,238.14 lakhs |
| Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) | ₹1,458.78 lakhs | ₹1,852.95 lakhs | ₹1,178.34 lakhs |
Key Points:
- The company has shown an increase in revenue and profit over the years.
- FY 2024 saw a growth in both revenue and PAT, compared to FY 2023.
- H1 FY 2025 reflects strong performance with an increase in revenue and a healthy profit margin.
Future Outlook:
Tejas Cargo India Ltd aims to use the funds raised through its IPO for:
- Expansion of Fleet: The company plans to purchase 64 new trailers to increase its capacity.
- Repayment of Borrowings: A portion of the funds will be used to reduce its outstanding debts.
- General Corporate Purposes: Including working capital and business expansion.
Key Performance Indicators
Here is the Key Performance Indicators (KPIs) for Tejas Cargo India Ltd in crores:
Tejas Cargo India Ltd – Key Performance Indicators (KPIs) (in Crores ₹)
| Key Performance Indicator | FY 2023 | 2024 | H1 FY 2025 |
| Total Assets | ₹179.57 Crore | ₹192.21 Crore | ₹180.92 Crore |
| Revenue | ₹381.78 Crore | ₹419.33 Crore | ₹252.61 Crore |
| Profit After Tax (PAT) | ₹9.86 Crore | ₹13.22 Crore | ₹8.75 Crore |
| Net Worth | ₹54.07 Crore | ₹63.19 Crore | ₹62.38 Crore |
| Reserves and Surplus | ₹37.88 Crore | ₹42.13 Crore | ₹41.46 Crore |
| Total Borrowings | ₹25.28 Crore | ₹26.79 Crore | ₹25.45 Crore |
Key Observations (in Crores):
- Total Assets: ₹179.57 Crore in FY 2023 to ₹192.21 Crore in FY 2024.
- Revenue: ₹381.78 Crore in FY 2023 to ₹419.33 Crore in FY 2024.
- Profit After Tax (PAT): ₹9.86 Crore in FY 2023 to ₹13.22 Crore in FY 2024.
- Net Worth: ₹54.07 Crore in FY 2023 to ₹63.19 Crore in FY 2024.
- Reserves and Surplus: ₹37.88 Crore in FY 2023 to ₹42.13 Crore in FY 2024.
- Total Borrowings: ₹25.28 Crore in FY 2023 to ₹26.79 Crore in FY 2024.
These figures are in crores (1 crore = ₹10 million), reflecting a clearer understanding of the company’s financials. Let me know if you need any further breakdown or details!
Tejas Cargo India Ltd IPO Objects of the Issue
The Objects of the Issue for Tejas Cargo India Ltd’s IPO include the following primary purposes for which the funds raised will be utilized:
1) Purchase of Trailers and Fleet Expansion:
- A portion of the proceeds will be used to acquire 64 new trailers. This will help increase the company’s fleet size and capacity, enabling better operational efficiency and meeting the growing demand for its logistics services.
2) Repayment or Pre-payment of Borrowings:
- The company plans to utilize part of the funds to repay or pre-pay its borrowings. This will help reduce the company’s interest burden and improve its financial position by lowering outstanding debts.
3) General Corporate Purposes:
- A portion of the funds will be used for working capital, business expansion, and other general corporate needs. This can include marketing, technology investment, and operational expenses, helping the company streamline its operations and support growth.
These objectives are designed to strengthen the company’s market position, improve operational efficiencies, and support long-term growth in the competitive logistics sector.
Strengths of Tejas Cargo India Ltd IPO:
1) Strong Growth in Revenue and Profitability:
- Tejas Cargo India Ltd has shown consistent growth in revenue and profitability, indicating a healthy financial trajectory. The company has expanded its market presence and has demonstrated a solid business model in the logistics sector.
2) Industry Growth:
- The logistics and transportation industry is growing rapidly, driven by the rise in e-commerce and increasing demand for efficient supply chain solutions. Tejas Cargo is well-positioned to capitalize on this growing market.
3) Expansion Plans:
- The company is expanding its fleet by acquiring 64 new trailers. This will help increase its capacity, improve service efficiency, and cater to a broader client base.
4) Experienced Management:
- The management team has a good track record in the logistics sector, which can inspire investor confidence in the company’s future prospects.
5) Debt Reduction Strategy:
- A portion of the IPO funds will be used to repay borrowings, improving the company’s balance sheet and reducing its debt load. This can lead to improved financial health and profitability.
Risks of Tejas Cargo India Ltd IPO:
1) Competition:
- The logistics and transportation industry is highly competitive, with many established players. Tejas Cargo faces competition from both large national players and smaller regional logistics providers, which could impact its growth and profitability.
2) Operational Risks:
- The company’s growth is heavily reliant on its fleet and operational efficiency. Any disruptions to its fleet operations, such as vehicle breakdowns or supply chain disruptions, could impact its business.
3) Debt Exposure:
- While the company is reducing its debt load through the IPO, its current level of borrowings could still pose risks if market conditions or interest rates worsen.
4) Regulatory Risks:
- The logistics sector is subject to various regulations and changes in government policies. Any adverse changes in regulations related to transportation, safety, or taxes could negatively affect the company’s operations.
5) Dependence on Key Clients:
- Tejas Cargo India Ltd’s business could be affected by the loss of key clients or a reduction in demand from specific sectors it serves, such as e-commerce or FMCG.
6) Limited Operating History:
- The company was only incorporated in March 2021, meaning it has a relatively short operational history. This could make it harder for investors to assess its long-term sustainability and growth.
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