Markets
BSE See NSE See 27,865.96
38.43 (0.14%)

Know Your IPO: Tiger Logistics (India)

By Priyanka Kumari | 8/8/2013 5:59 PM Thursday

Delhi-based Tiger Logistics (India) (TLIL) is the first company in the logistics sector to file a DRHP for listing on the BSE SME platform. The company has planned to offer 11.40 lakh equity shares, aggregating to Rs 7.52 crore. In this issue, equity shares will cost the public Rs 66 per share. The issue also includes a reservation of 58000 equity shares for market makers out of the total offered size. Sarthi Capital Advisors is the lead manager for this issue. The issue will open on 27 Aug this year and will close on 29 Aug 2013.  

TLIL provides logistics services for its clients and started its logistics services in the year 2000. It is engaged in third party logistics operations. It has a registered office in Delhi and branches in Mumbai, Pune, Mundra, Ludhiana and Kolkata. TLIL offers its services in many sectors including automobiles, aviation, consumer durables, agri & perishable products and chemicals.

The company is raising funds to the tune of Rs 7.52 crore to meet its working capital requirement. It has a total capital requirement of Rs 1154 crore. It intends to employ Rs 6.4 crore from the issue proceeds, and will invest Rs 5.24 crore from internal sources to fulfil the overall requirement.

On the financial front, TLIL's revenue came in at Rs 123 crore in FY13 by showing a growth of 17% on a YoY basis. Due to the increase in operating expenses, the total expenditure for the company increased by 17% to Rs 117 crore. Its EBITDA stood at Rs 5.8 crore. The bottomline stood at Rs 3.4 crore for FY13, over that of Rs 2.81 crore in FY12. Moreover, the company saw a CAGR of 11.5% in its revenues over the five-year period. Its net profits for the same period recorded a CAGR of 20%.

The company has quoted a price of Rs 66 per share, and with this, its share price will trade at a FY13 PE of 8.22x. Other listed players in this sector including Gati, Allcargo Logistics, Transport Corporation of India and Gateway Distriparks are presently trading at a TTM PE of 21.6x, 5.2x 6.7x and 8.7x respectively. In comparison with its peers, TLIL has quoted a higher price for the issue.

The logistics sector primarily depends on four factors – good infrastructure, reforms in governmental policy, increase in trading, and last but not the least, consumption growth. Logistics cost in India is higher as compared to that in developed countries due to poor infrastructure, which results in inadequate service quality. Brand name also plays a critical role in this space, and this company enjoys no brand recognition. Considering all these factors, we advise investors to stay away from the issue.

Find More Articles on: Markets, DSIJ Mindshare, IPO, IPO Analysis, Research

collapse Related Readings collapse

DSIJ
Mindshare

Indices bounce back

Indices bounce back

The Indian markets witnessed a good recovery at closing buzz, on September's last trading session. Auto index outperformed the day followed by Mid-caps and Small-caps. The Sensex ended 38 points higher at 27865 and Nifty was up 20 points at 8611. Both the indices closed with a positive bias around 0.14-0.23 per cent respectively.

Overnight Digest – Stocks to look out for on October 3

Overnight Digest – Stocks to look out for on October 3

The stocks which could witness significant movement on October 3 are Edelweiss Financial Services, Arman Financial Services, Gati/ Snowman Logistics/ Gateway Distriparks, NHPC, ONGC/Petronet LNG/ Oil India.

Cipla tanks 6 per cent in trade on US FDA observations for Goa units

Cipla tanks 6 per cent in trade on US FDA observations for Goa units

Mumbai- headquartered pharmaceutical company, Cipla said in an exchange filing that US FDA recently concluded audit of three facilities at Goa and subsequently issued four observations pertaining to the audit carried out.

Breweries rule Dalal Street after Patna High Court stay order on govt's policy

Breweries rule Dalal Street after Patna High Court stay order on govt's policy

The Patna High Court smashed down the Bihar Government’s imposition of total prohibition in the state. The Bihar Prohibition and Excise Bill-2016, which came into effect on April 5, 2016 was deemed illegal by a division bench of the court.

Alkem Laboratories cracks 8 per cent on US FDA observations

Alkem Laboratories cracks 8 per cent on US FDA observations

Mumbai based pharma major, Alkem Laboratories in an exchange filing informed the exchanges that the company has received the inspection report which contains thirteen 483 observations.

Markets @ 2 pm: Movers and Shockers

Markets @ 2 pm: Movers and Shockers

Following are the top gainers and losers as of September 30. Dishman Pharma is the largest gainer; whereas Alkem Lab  is the largest loser.

Mid-market commentary September 30, 2016

Mid-market commentary September 30, 2016

The Indian markets are flattish at mid-market session. Market witnessed some stock specific action. The Nifty has seen some sideways move, up by 2 points at 8600 and the Sensex is up by 5 points at 27830.

Three new players in F&O segment from October series

Three new players in F&O segment from October series

Shares of IDFC Bank, DCB Bank and Torrent Power will remain in focus, as these stocks will enter the derivative segment from Friday.  The share prices of these companies increased by 3.47 per cent, 4.76 per cent and 4.04 per cent on bourses in early trades.

Markets @ 11 am: Movers and Shockers

Markets @ 11 am: Movers and Shockers

Following are the top gainers and losers as of September 30. TVS Srichakra is the largest gainer; whereas Alkem Lab is the largest loser.

Sintex Industries surges after demerger scheme

Sintex Industries surges after demerger scheme

Sintex Industries’ board has approved demerger of custom moulding business and prefab business from its two arms Sintex BAPL and Sintex Infra Projects. Both the companies are wholly-owned subsidiaries of Sintex Plastic Technologies, Sintex Industries, respectively.

Subscribe to
Newsletter

news letter

More for the early bird.

Get the post-market reports and breakfast news right in your inbox. See latest »

Market
CHIT CHAT

What is your view on markets today?

200  Characters Remaining.
Please LOGIN  to post your comments or Click here to go back.
vicky shankar Oct 01 01:24AM
Buy hul
sln sudharsan Sep 30 06:57PM
Nifty taken support at around 8580 levels. Upward move possible . Target 8675
sln sudharsan Sep 30 06:54PM
Buy Maruti Suzuki for a jump of Rs.150 from here.
Rohit sharma Sep 30 05:37PM
its updated please check
Shivesh Singh Sep 30 03:54PM
IPO doesn't show here, it will show in a weeks time