Tejas Cargo India Limited, a transportation service provider, is set to launch its ₹105.84 crore IPO, comprising a fresh issue of 63 lakh shares. The subscription window opens on February 14, 2025, and closes on February 19, 2025. Investors can follow the company’s journey as it prepares for its listing on the NSE SME platform on February 24, 2025.
The IPO offers equity shares with a face value of ₹10, priced in the range of ₹160 to ₹168 per share, with a lot size of 800 shares. Retail investors can participate with a minimum investment of ₹1,34,400 (1 lot), while HNIs need to subscribe to at least 2 lots (₹2,68,800). The share allotment is scheduled for February 19, ensuring a swift listing process. As Tejas Cargo India Limited enters the public market, investors have an opportunity to be part of its growth in India’s transportation sector.
Tejas Cargo India Limited IPO is a fundraise worth ₹105.84 crores comprising purely of a fresh issue with 63 shares reserved for the market maker New Berry Capitals Private Limited. Qualified Institutional Buyers are being offered not more than 50% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 15% of the net issue. The IPO will be available for subscription from February 14, 2025, to February 18, 2025, providing an opportunity for investors looking to gain a stake in the transportation sector.
| Tejas Cargo IPO date | February 14, 2025 to February 18, 2025 |
| Price band / Fixed price | ₹160 to ₹168 per share |
| Face value | ₹10 per share |
| Lot size | 800 shares |
| Issue type | Book Built Issue IPO |
| Fresh issue size | 63,00,000 shares amounting to ₹105.84 crores |
| Total issue size | 63,00,000 shares amounting to ₹105.84 crores |
| Listing at | NSE SME |
| Market maker portion | - |
| Shareholding post-issue | 2,38,92,840 shares |
| Shareholding pre-issue | 1,75,92,840 shares |
Tejas Cargo Limited IPO opens for subscription on February 14, 2025, and closes on February 18, 2025, with allotment scheduled for February 19, 2025.
| IPO open date | February 14, 2025 (Friday) |
| IPO close date | February 18, 2025 (Tuesday) |
| Basis of allotment | February 18, 2025 (Wednesday) |
| Initiation of refunds | February 20, 2025 (Thursday) |
| Credit of shares to Demat account | February 20, 2025 (Thursday) |
| Listing date on NSE SME | February 24, 2025 (Monday) |
| Cut-off time for UPI mandate confirmation | 5 PM on February 18, 2025 (Tuesday) |
Tejas Cargo India Limited, incorporated in March 2021, is a Faridabad-based logistics company specializing in supply chain transportation across India. It offers express road transportation services under Full Truck Load (FTL) for industries such as logistics, steel, e-commerce, FMCG, and white goods. The company operates through 23 branches, handling placements, loading, and unloading. With a workforce of 284 employees as of September 30, 2024, Tejas Cargo ensures efficient nationwide operations.
As of October 31, 2024, the company manages a fleet of 1,131 vehicles, including 913 container trucks and 218 trailers, ranging from 32 to 40 feet and capable of carrying up to 42 tonnes. The average age of its container trucks is 3.4 years, while trailers average 0.7 years.
During Fiscal 2024, Tejas Cargo completed 98,913 trips, with over 58,943 trips completed as of September 30, 2024.
The Tejas Cargo India Limited IPO has caught the eyes of investors as the company reportedly saw an annual rise of 422.59% in its revenue and 13.22% yearly increase in the Profit After Tax (PAT), during the financial year ended March 31, 2024.
As of July 31, 2024, the key performance indicators reflect the company's financial health with a Return on Equity of 38.62%, Return on Capital Employed (ROCE) at 28.30%. The Return on Net-Worth (RoNW) stands at 23.85%, and the PAT Margin was 3.13%. The Price to Book Value was 0.07. The company’s market capitalisation is ₹XX crore.
| Period Ended | September 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 255.09 | 422.59 | - | - |
| Assets | 294.29 | 236 | - | - |
| Net Worth | 63.16 | 55.45 | - | - |
| Profit After Tax | 8.75 | 13.22 | - | - |
| Reserves & Surplus | 46.6 | 55.2 | - | - |
| Total Borrowing | 206.28 | - | - | - |
Amount in ₹ crores / lakhs
The pre-IPO EPS is at ₹7.52 while the post-IPO EPS will be ₹7.32. Similarly, the pre-IPO Price to Earnings ratio is 22.35 and will become 22.95 post-IPO.
Tejas Cargo India Limited stands out with its heavy asset ownership model, ensuring high fleet availability and cost efficiency. With 1,131 vehicles, the company maintains strong operational control while leveraging IoT-based tracking and AI-powered security to enhance cargo safety and efficiency. An in-house maintenance system at key locations like Sidhrawali further reduces downtime, ensuring smooth logistics operations. Its diverse client base across industries such as logistics, steel, e-commerce, and FMCG provides revenue stability, minimizing sector-specific risks.
The company has demonstrated strong financial growth, with a 41.97% CAGR in revenue, showcasing its ability to scale effectively. An experienced and motivated management team drives strategic expansion and operational excellence. Looking ahead, Tejas Cargo plans to introduce a hybrid fleet model by 2026 to optimize costs and scalability while expanding into rail logistics to boost cargo capacity and efficiency.
Despite its strengths, Tejas Cargo faces challenges, including ongoing legal proceedings against the company, its promoter, and a director, which could lead to financial liabilities. The company’s heavy reliance on road networks exposes it to potential delays and cost escalations, while the absence of in-house truck drivers means it depends on outsourced drivers, which may impact service reliability. Additionally, past statutory non-compliances and delayed filings pose regulatory risks that could lead to legal penalties.
The company also faces brand recognition challenges, which may hinder business growth and market expansion. A high debt-to-equity ratio of 3.27, with ₹20,498.63 lakhs in debt primarily for vehicle investments, presents financial strain, and any inability to service this debt could adversely affect its operations. Furthermore, delays in obtaining necessary approvals after the company’s name change may disrupt operations, while dependence on outsourced technology solutions makes it vulnerable to disruptions and system failures.
Should you invest in the COMPANY NAME IPO?
Investing early in Tejas Cargo India Limited’s IPO offers an opportunity to be part of its growth journey, particularly in the biofuels sector. However, potential investors should evaluate key aspects such as the company’s operational performance, financial stability, industry trends, and expansion strategy, while aligning their decision with their investment goals and risk tolerance. Reviewing the offer document and seeking professional advice, if needed, can help ensure an informed investment decision.
What is the Tejas Cargo India Limited IPO?
The Tejas Cargo India Limited IPO is an NSE SME offering consisting of 63lakh fresh issue of equity shares with a face value of ₹10, aiming to raise ₹105.84 crore. The price band has been set between ₹160 to ₹168 per share, with a minimum order quantity of 800 shares. This IPO will be open for subscription from February 14, 2025, to February 18, 2025. New Berry Capitals Private Limited is the book-running lead manager, Bigshare Services Private Limited is the registrar while New Berry Capitals Private Limited is the market maker.
When will the Tejas Cargo IPO open?
The COMPANY NAME Limited IPO will open for subscription on February 14, 2025, and will close on February 18, 2025.
When is the Tejas Cargo IPO listing date?
The tentative listing date for the Tejas Cargo Limited IPO is Monday, Feb 24, 2025.
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