The Deccan Transcon Leasing Limited IPO is an exciting opportunity for investors to participate in a leading logistics and container leasing company. The IPO offers a combination of a fresh issue of 55.24 lakh shares and an offer for sale of 5 lakh shares, with a total issue size of 60.24 lakh shares. The IPO will open for subscription on September 13, 2024, and close on September 18, 2024. The shares will be listed on the NSE SME, with a tentative listing date set for September 23, 2024.
Deccan Transcon Leasing Limited is a well-established company that offers a range of logistics solutions, including leasing tank containers and providing freight forwarding services across the globe. Below, you’ll find comprehensive details about the IPO, the company’s business operations, and how to apply for shares.
About Deccan Transcon Leasing Limited
Incorporated in February 2007, Deccan Transcon Leasing Limited is a leading provider of logistics and leasing solutions, catering primarily to clients in the chemicals, pharmaceuticals, FMCG, and agriculture sectors. The company specializes in leasing tank containers and providing freight forwarding and shipping solutions across various regions, including Europe, Asia, Oceania, South America, Africa, and the USA.
With a strong focus on serving clients in specialty chemicals and petrochemicals, Deccan Transcon has built a reputation for providing high-quality services to customers globally. As of July 31, 2024, the company had 100+ long-term clients and had served over 5,000 customers since its inception. The company’s operations are driven by its commitment to providing comprehensive logistics solutions through the latest technological advancements.
Key Services Offered:
- Leasing of Containers: Specializing in tank containers used for transporting chemicals, petrochemicals, and other liquids.
- Shipping and Freight Forwarding: Offering end-to-end freight forwarding solutions, including Non-Vessel Operating Common Carriers (NVOCC) services, customs clearance, transportation, and tank fleet management.
Competitive Strengths:
- Global Reach: Operations in key global regions across five continents.
- Large Customer Base: Long-term relationships with over 100 clients, along with a large and growing customer base.
- Advanced Technology: Offering the latest in logistics technology, such as advanced tracking systems and digital platforms for customer interaction and order management.
- End-to-End Services: Providing comprehensive logistics solutions that include leasing, freight forwarding, and management of logistics operations.
Deccan Transcon Leasing Limited IPO Details
The Deccan Transcon Leasing Limited IPO consists of a fresh issue and an offer for sale. The total issue size is 60.24 lakh shares, making it an attractive investment opportunity for both retail and institutional investors.
| IPO Parameter | Details |
|---|---|
| IPO Size | 60.24 lakh shares |
| Fresh Issue | 55.24 lakh shares |
| Offer for Sale | 5 lakh shares |
| Face Value of Each Share | ₹10 per share |
| Issue Type | Book Built Issue |
| Lot Size | To be announced |
| Minimum Investment | To be announced |
| Listing Exchange | NSE SME |
Key Dates of the IPO
The following table provides an overview of the tentative timeline for the IPO:
| Event | Date |
|---|---|
| IPO Open Date | Friday, September 13, 2024 |
| IPO Close Date | Wednesday, September 18, 2024 |
| Basis of Allotment | Thursday, September 19, 2024 |
| Initiation of Refunds | Friday, September 20, 2024 |
| Credit of Shares to Demat | Friday, September 20, 2024 |
| Listing Date | Monday, September 23, 2024 |
IPO Reservation
The IPO is divided into various categories to ensure fair allocation among different types of investors. Below is the breakdown of the reservation for each category:
| Investor Category | Shares Offered |
|---|---|
| Qualified Institutional Buyers (QIB) | Not more than 50.00% of the net offer |
| Retail Individual Investors (RII) | Not less than 35.00% of the net issue |
| Non-Institutional Investors (NII/HNI) | Not less than 15.00% of the net issue |
Promoter Shareholding
The promoters of Deccan Transcon Leasing Limited include Jaidev Menon Parath, Karthika Menon, Miriyala Shekhar, Pranav Jaidev, and Navaneeth Jaidev. The promoter group holds a significant stake in the company, which will be diluted after the IPO.
| Shareholding | Pre-Issue (%) | Post-Issue (%) |
|---|---|---|
| Promoters | 87.17% | To be announced |
Company Financials
Deccan Transcon Leasing Limited has demonstrated strong financial performance over the past few years, with significant growth in assets and profit after tax (PAT). Despite a decrease in revenue between FY 2023 and FY 2024, the company’s PAT increased by 38% during the same period. Below is a summary of the company’s financial performance for the last three years:
| Financial Metrics (₹ Lakhs) | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|
| Total Assets | 7,721.58 | 5,407.72 | 3,924.64 |
| Revenue | 15,363.76 | 18,061.76 | 15,319.40 |
| Profit After Tax (PAT) | 1,181.89 | 855.70 | 519.10 |
| Net Worth | 3,221.32 | 2,028.26 | 1,207.59 |
| Reserves and Surplus | 1,501.37 | 1,808.26 | 987.59 |
| Total Borrowing | 2,309.55 | 1,775.49 | 989.82 |
Key Financial Ratios (As of March 31, 2024)
| KPI | Values |
|---|---|
| Return on Equity (ROE) | 45.03% |
| Return on Capital Employed (ROCE) | 41.43% |
| Debt-to-Equity Ratio | 0.72 |
| Return on Net Worth (RoNW) | 36.69% |
| PAT Margin | 7.75% |
Objects of the Issue
The company intends to use the net proceeds from the IPO for the following purposes:
- Procurement of Tank Containers: A portion of the funds will be allocated to procure additional tank containers, expanding the company’s capacity to lease containers for chemical and petrochemical logistics.
- Working Capital Requirements: The company plans to use part of the IPO proceeds to meet its working capital needs.
- General Corporate Purposes: The remaining funds will be utilized for general corporate expenses, allowing the company to strengthen its operations and manage expenses more efficiently.
Why Invest in Deccan Transcon Leasing IPO?
Deccan Transcon Leasing Limited presents a strong investment case due to its established presence in the logistics industry and its consistent growth in profitability. The company’s competitive strengths and focus on providing innovative logistics solutions make it a promising option for long-term investors.
Reasons to Invest:
- Global Presence: The company operates in over 40 countries, offering logistics solutions across Europe, Asia, Oceania, South America, Africa, and the USA.
- Strong Financial Growth: Despite a temporary decline in revenue, Deccan Transcon Leasing has seen a significant increase in profitability, with a 38% rise in PAT in FY 2024.
- Large Customer Base: The company has built long-term relationships with a large customer base, serving over 5,000 clients since its inception.
- Advanced Technology: The company leverages cutting-edge logistics technology, including tracking systems and digital platforms for customer interaction, ensuring efficient and transparent service delivery.
- End-to-End Logistics Solutions: Deccan Transcon Leasing offers comprehensive logistics solutions, including container leasing, fleet management, and freight forwarding, making it a one-stop solution for clients.
Risks Associated with the IPO
As with any investment, there are risks associated with the Deccan Transcon Leasing IPO that potential investors should consider:
- Market Volatility: Fluctuations in the stock market and overall economic conditions may impact the share price post-listing.
- Revenue Decline: The company experienced a 15% decline in revenue between FY 2023 and FY 2024, which may raise concerns about future growth prospects.
- Industry Risks: The logistics and leasing industry is subject to fluctuations in demand, regulatory changes, and competition, which could affect the company’s operations and profitability.
How to Apply for Deccan Transcon Leasing IPO
Investors can apply for the Deccan Transcon Leasing IPO through several methods, including stockbroker platforms and banking portals. Below is a step-by-step guide on how to apply:
Step-by-Step Process:
- Login: Log in to your stockbroker or net banking account.
- Select IPO: Navigate to the IPO section and select “Deccan Transcon Leasing Limited IPO.”
- Enter Bid Details: Enter the number of shares you wish to bid for, along with the price (within the price band to be announced).
- Confirm Payment: Complete the application using ASBA (Application Supported by Blocked Amount) or UPI.
- Submit: Submit your IPO application before the close of the subscription window.
Post-Listing Share Performance
After the listing on the NSE SME platform, investors can monitor the performance of Deccan Transcon Leasing shares. With the company’s focus on expanding its operations and increasing profitability, the stock is expected to attract interest from both retail and institutional investors.
