Tejas Cargo IPO Review: Should You Apply or Not?

Tejas Cargo IPO

Tejas cargo IPO is a book-built issue for Rs 105.84 crores. The offer is going to open for subscription on 14th February 2025 and will close on 18th February 2025. The tentative listing date is fixed as 24th February 2025, i.e. Monday. 

Tejas Cargo IPO comprises entirely of a fresh issue aggregating to ₹ 105.84 crores. The price band for the offer is set with a floor price of ₹ 160 and a cap price of ₹168 per share. For more details on the public offer of Tejas Cargo India Limited, please refer to the below table: 

Tejas Cargo IPO Key Details

Tejas Cargo IPO Dates 

Tejas Cargo IPO – Grey Market Premium (GMP)

Tejas Cargo IPO GMP: Grey Market Premium (GMP) refers to the price of an IPO trailing in the grey markets. It also refers to the difference between the issue price and the grey market price of an IPO.

Tejas Cargo India Limited has a trading grey market premium of Rs 0 as of 14th February 2025. This GMP indicates a neutral listing with a 0% gain per cent on the Indian markets. Refer to the table below for more information on the Tejas Cargo IPO GMP of the previous days: 

Tejas Cargo India Limited GMP Trend

Tejas Cargo IPO – Grey Market Premium (GMP)

Tejas Cargo IPO GMP: Grey Market Premium (GMP) refers to the price of an IPO trailing in the grey markets. It also refers to the difference between the issue price and the grey market price of an IPO.

Tejas Cargo India Limited has a trading grey market premium of Rs 0 as of 13th February 2025. This GMP indicates a neutral listing with 0% gain per cent on the Indian markets. Refer to the table below for more information on the Tejas Cargo IPO GMP of the previous days: 

Tejas Cargo India Limited GMP Trend

Tejas Cargo IPO Key Performance Measures 

Before investing in a company, it is crucial to analyse its financial performance to understand the profit growth, cash flow and other risks and strengths. Analysis of the financial statements can help you to project future profitability prospects. Therefore, to make informed decisions regarding the Tejas Cargo IPO, you must take a look at the below financials of the company: 

(Figures are in Lakhs)

The revenue of Tejas Cargo India Limited has depicted consistent growth in each of the above-mentioned financial metrics. The company clocked a 100.35% growth in the revenue from operations from ₹ 20,929.24

In FY 2022 to ₹ 41,932.61 in FY 2024. The revenue of Tejas Cargo India Limtied in FY 2023 was ₹ 38,178.52

which grew by 8.95% to ₹ 41,932.61 in FY 2024. 

On the EBITDA side, the company has shown similar growth in its figures. The EBITDA of Tejas Cargo India Limited in FY 2022 was ₹ 837.78, which increased to ₹ 3,282.31 in FY 2023 and to ₹ 6,903.16 in FY 2024. The percentage increase in the EBITDA for FY 2022 to 2024 is 291.78% and 110.29%. 

Tejas Cargo Lot Size Structure 

Tejas Cargo IPO Reservation Requirement

Tejas Cargo IPO is an NSE SME IPO, likely to be listed on the Indian stock exchanges on 24th February 2025. The Tejas Cargo IPO reservation is as follows:

Tejas Cargo India Limited Peer Comparison

(Figures in Crores)

Tejas Cargo IPO Subscription Details

The Tejas Cargo IPO was subscribed 0.01 times as of 14th February 2024, 10:30 AM. Retail investors showed maximum participation by subscribing for 20,72,800 shares, accounting for 0.03 times. For more information, refer to the  below table: 

Tejas Cargo IPO Subscription Details

Tejas Cargo IPO Objectives 

Tejas Cargo India Limited intends to use the net issue proceeds from the IPO for the following objectives: 

1. Purchase of additional trailers for our company. 
2. To meet capital working requirements
3. Repayment and/or pre-payment in full or part of certain borrowings availed by our company. 
4. General Corporate Purposes

The company will be deploying the net issue proceeds (Gross issue proceeds – issue  expenses), in the above-mentioned objectives in the following manner: 

*The amount utilised for general corporate purposes shall not exceed 25% of the gross proceeds of the Issue.

Risk and Strenghts of Tejas Cargo IPO 

To make a sound investment in the Tejas Cargo IPO, you must have a look at the below-mentioned risks and strengths of the company: 

Strengths

• Improved efficiency and reliability because of advanced technologies such as automated warehouse management and GPS tracking. 
• Wide range of service offerings like freight forwarding, warehousing, and distribution catering to diverse customer’s needs.  
• Global reach and economies of scale.
• Advanced inventory management systems. 

Risks 

• Fluctuating transport costs affect the service prices.
• Natural disasters impact supply chains
• The increasing cost of warehouse operations
• Trade tension and political stability create chances of supply chain disturbance. 
• Economic downturns can lead to a decreased demand for logistics services. 

Tejas Cargo India Limited 

Tejas Cargo India Limited is a haul supply chain transportation service provider based in Faridabad, Haryana. The company provides by-road transportation services under the Ful Truck Load (FTL) to a wide range of companies that are engaged in teh business of logistics, steel and cement, e-commerce, industrial & chemicals, FMCG and white goods sectors. During FY 2024, the company made 98,913 trips and 58,943 trips during the six-month period ending September 30, 2024, on a pan-India basis. The company’s services include shipment planning, route, optimisation, fleet selection, documentation, tracking, communication and coordination, and performance evaluation. 

As of 31st October 2024, the fleet size of Tejas Cargo India Limited was 1,1131 vehicles, including 218 trailers and 913 container trucks. Out of the total fleet, 292 vehicles are debt-free, consisting of 34 trailers and 258 container trucks. The company also has an-in house maintenance and repair facility in Haryana spread across 3 acres to facilitate the service and maintenance requirements of their fleets. 

Tejas Cargo India Limites specialises in supply chain transportation services under FTL, which are offered to meet the long-term and ad-hoc demands to achieve efficiency and effectiveness in business operations. 

Tejas Cargo IPO Review

Conclusively, we can say that the Tejas Cargo IPO can be a good bet for investors who are looking to make some risky bets in the Indian stock market. The company has definitely earned increasing returns from FY 2022 to FY 2024; however, the sector in which Tejas Cargo operates is highly fragmented and competitive. 

Dilip Davda of Chittorgarh has provided this IPO with a high-risk/low-return, and therefore, before making any investment, you must weigh your options and risk tolerance levels properly to make wise decisions for the IPO

How to Apply for Tejas Cargo IPO  

To apply for the Tejas Cargo IPO, you simply need to follow the below steps: 

1. Research the risks, benefits, and key details of the public offer. 
2. Open a demat account with Univest to know more about the IPO and invest in it. If you have an old demat account, you can also use it to invest in the IPO. 
3. If you are a retail investor, place a bid of 800 shares for a total amount of ₹ 1,34,400. 
4. Once the bidding process is completed, you will receive a request for payment initiation using your chosen investment method. Approve the payment request and stay updated with the allotment status for the Tejas Cargo IPO.

Snapshot of Tejas Cargo IPO 

• Tejas Cargo IPO is a book-built issue consisting of 63.00 lakh shares aggregating to an IPO size of ₹ 105.84 crores.
• The IPO is set to open for subscription on 14th February 2025 and will be closing on 18th February 2025. 
• The issue is a fresh issue of 63,00,000 shares being offered with a price band of ₹ 160 to  ₹ 168. 
• The Tejas Cargo IPO GMP is currently trading at ₹ 0, which is indicating towards a neutral listing of shares on the Indian markets. 

FAQ on Tejas Cargo IPO 

1. What is the price of the Tejas Cargo IPO?

The Tejas Cargo IPO is a book-built issue with a price band of ₹ 160 to  ₹ 168. 

2. How can I check Tejas Cargo IPO status?

You can check the status of Tejas Cargo IPO either on the official website of the Bombay  Stock Exchange or through your registered stockbroking platform. 

3. What is the GMP of Tejas Cargo IPO?

The latest updated GMP of the Tejas Cargo IPO as of 13th February 2025 is ₹ 0. 

4. What is Tejas Cargo IPO Limited’s business?

Tejas Cargo India Limited is engaged in the business of providing log haul supply chain transportation services across pan India.  The company provided its services through road transportation under Full Truck Load (FTL). 

5. When will the IPO of Tejas Cargo India Limited open for subscription?

The Tejas Cargo IPO will open for subscription on 14th February 2025 and 18th February 2025. 

Open a demat account on Univest now to initiate your investment journey. Explore the Univest terms and conditions by clicking on the link. 

Disclaimer: The above information is accumulated from authentic sources and is just for informational purposes. To have detailed information about Tejas Cargo IPO, download the Tejas Cargo IPO RHP and IPO DRHP. Conduct your own research before investing in IPOs to avoid significant losses. You can also consult your financial advisor.

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