• Total Issue Size: It provides a fresh issue of up to 24,57,600 Equity Shares of Face Value of Rs.10.
• Price Range: 95-102 Rs
• Lot size: 1200 shares per lot.
• Issue Type: The IPO is Book Built Issue.
• Subscription date: The IPO subscription begins from 24th January, 2025 and ends on 28th January, 2025.
• Listing date: The company will be listed on 31st October, 2024
• Stock Exchange: The IPO is going to be listed on SME platform of Bombay Stock Exchange.

The Company proposes to utilize the net proceeds raised through this IPO to repay certain loans taken by the company, use its net proceeds to upgrade its trucks and equipment and meet capital requirement for general corporate purposes.

The table below (in lakhs) stipulates the financial performance of the company over the last 3 fiscal years and up-till September 30, 2024.

The transport and logistic industry is a blooming industry in India given the rapid increase of demand of goods and services of different sectors and the development of more road networks, the markets have seen a significant growth with the increase of demand of consumers in imports and exports, domestically and internationally. 

The transport and logistics sector in India is projected to grow CAGR of 4.5% from 2022 to 2050. and with the central government’s initiative like National Logistics Policy (NLP), PM Gati Shakti, Special Purpose Vehicles by Ministry of Roadways and digitization of paperwork and permits are a big advantage for the logistic sector that will provide competitiveness in the long term.

The logistic industry also contributes approximately 14.4 % to India’s GDP and is a primary global supply chain and serves as backbone to many big and small enterprises that requires imports and exports domestically and Internationally.

The Indian market is predicted to cross US$ 380 billion by 2025 and the Indian ecommerce industry sector is showing potential growth with consumers increasing demand for online deliveries of commodities and big companies that are resulting to rapid expansion of warehouses and logistics. 

This warehouse industry is also expected to reach US$ 34.99 billion by 2027. The company is involved in the industry that contributes a potential towards India’s growth and is well positioned for the long term.

• The company operates in Logistics with revenue increasing from Rs. 580.22 lakh in 2022 to 2,933.43 as of 30th September 2024.

• The company also provides services for trading of Agricultural Commodities and the revenue increased from 1,143.75 lakh in 2022 to 2,150.13 as of 30th September 2024.
• The company has many long term contracts and offers services of its logistics pan India.
• The company MD and promoter is Mr. Prashant Natwarlal Lakhani who is in the courier and cargo industry since 1991 and has founded major big logistic companies like Express Cargo, Express Cargo etc in the past.
• The company has acquired a fully owned subsidiary GB Hospitality (India) Private Limited which is involved in the same line of logistic business.
• The company ensures efficient and flexible logistic operations by implementing advanced tracking technologies and ensuring specialized handling and remote deliveries.

• The company has certain unsecured short term and long term loans of Rs. 1,543.95 and Rs. 463.00 lakhs respectively that are repayable on demand and failure to repay these loans may impact the cash flow and operations of the business.

• The company’s promoters are facing certain pending litigation and any outcome of this proceeding may impact the company operations.
• The company and its subsidy, in the recent years have not complied with certain mandatory company act regulations such as filing of auditor appointment, disclosure of charge creation, financial reporting and delay in filing DPT-3 forms. These non-compliance may lead to serious penalties and other actions against the companies and directors ultimately effecting the business operations and financial conditions.
• The company has recently fully acquire the material subsidy from its promoter at a considerable rate after due diligence and market valuation but the uncertainty and risk involved from acquiring a subsidy from its own promoter and not obtaining better terms from  an independent entity will always be sceptic in the long term.
• The company has its registered office rented in Maharashtra and a significant portion of its revenue is also generated from this state. Any political, social, economical or natural unrest in the state could adversely effect the company operations and financial conditions.
• The failure of the company to attract long terms agreements or retain key customers for the long term may also have adverse impact in business operations and financial conditions.
• The rise in fuel prices, employee misconduct or negligence, unpredictable accidents, machine failures and risk of goods being hazardous or illegal could also have an impact on the business operations.

The company is in the transport and logistic business that would significantly contribute to the growing ecommerce industry,retail markets in India with rapid increase in consumers, trade, imports and exports. The company has shown positive growth in profit after tax increasing from Rs. 96.05 lakh in 2022 to Rs. 252.80 lakh as of September 30, 2024 but has also availed certain long term and short term borrowings that would pose a risk to its business operations. The company has a high risk factor as there are many companies already involved in the this line of business and potential investors should carefully access the risks given in the draft red herring prospectus before investing.

The company with the help of this IPO aims to raise funds to repay its long term and short term loans, meet capital requirements to upgrade its trucks/equipments and further advance its business operations. Its financial strength and profits are remarkable and impressive for a company that started its operations five years ago. The industry which the company is involved in also reflects potential growth for the long term. Potential investors should go through its RHP draft prospectus before investing.