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CJ Darcl Logistics Limited IPO Details: Date, Share Price, Size, GMP & Review

CJ-Darcl-Logistics-Limited-IPO-Details-Date-Share-Price-Size-GMP-Review

CJ Darcl Logistics – About the Company

With over 36 years of operational experience, CJ Darcl Logistics has become a leading logistics company in India, offering multimodal services across various verticals such as road/FTL transportation, rail/multimodal transportation, warehousing and many more. CJ Darcl operates on an 'asset-right' business model, with assets necessary for quality services either owned or provided by a large network of business partners. As of March 31, 2023, the company owned 990 commercial vehicles and a network of 820,333 partnered fleets. The company provides differentiated logistics solutions with its pan-India presence, integrated service offerings, market intelligence, and large network of business partners.

CJ Darcl Logistics IPO Objectives

CJ Darcl Logistics IPO comprises of both fresh issue and the offer for sale (OFS) by selling promoter.

  • The IPO consist of Offer for sale of up to 5,431,071 Equity Shares aggregating up to ₹ [●] million by selling promoters.
  • According to the DRHP, the proceeds from Fresh issue, aggregating up to ₹ 340 crores will be utilized for following objectives:
Particulars Amount which will be financed

from Net Proceed of fresh issue

Repayment/ prepayment, in full or in part of certain

outstanding borrowings availed by Company

2,400.00
Funding capital expenditure requirements

of Company towards purchase of EVs

100
General corporate purposes [●]
Total [●]

 

CJ Darcl Logistics IPO Details:

IPO Open Date To be Announced
IPO Close Date To be Announced
Basis of Allotment To be Announced
Listing Date To be Announced
Face Value Rs 10 per share
Price To be Announced
Lot Size To be Announced
Total Issue Size [●] Equity Shares
Aggregating up to ₹ [●] million
Fresh Issue Up to [●] Equity Shares
Aggregating up to ₹ 3,400.00 millions
Offer For Sale Up to 5,431,071 Equity Shares
Aggregating up to ₹ [●] million
Issue Type Book Built Issue IPO
Listing At BSE & NSE
QIB Shares Offered Not more than 50% of the Net Issue
Retail Shares Offered Not less than 35% of the Net Issue
NII (HNI) Shares Offered Not less than 15% of the Net Issue

 

CJ Darcl Logistics IPO Issue Price & Size

Final RHP of CJ Darcl Logistics hasn’t been filled with the SEBI, so therefore any pricing information isn’t known at the moment. Only the fresh issue size is known, which is Rs. 350 crores aggregating up to ₹ [●] million and offer for sale by existing shareholders amounting up to 5,431,071 Equity Shares. All the final pricing details will be details will be updates once the RHP is made public.

CJ Darcl Logistics IPO Launch Date

CJ Darcl Logistics IPO will be open on XXXX (Date) and will be closed XXXX (Date). You can bid in the CJ Darcl Logistics IPO between these date ranges to become eligible for the IPO application and other proceedings in the IPO.

CJ Darcl Logistics Financial Statements:

Particulars FY23 FY22 FY21
Income
Revenue from operations 42158.26 36813.81 28875.69
Other income 235.7 149.48 202.82
Total Income 42393.96 36963.29 29078.51
Expenses
Cost of services 38429.47 33643.17 26370.32
Employee benefit expenses 1611.64 1300.42 1134.02
Finance cost 455.66 309.16 380.33
Depreciation and amortization expense 524.77 436.45 439.13
Other expenses 504.81 473.93 330.48
Total expenses 41526.35 36163.13 28654.28
Restated profit for the year 677.03 613.68 317.47
Basic EPS 29.87 27.08 14.01
Diluted EPS 29.87 27.08 14.01

 

Key Performance Indicator FY23 FY22 FY21
Revenue from Operations 42158.26 36813.81 28875.69
Revenue from Operations Growth YOY % 14.52% 27.49% 20.18%
Restated profit for the year 677.03 613.68 317.47
Restated profit for the year (%) 1.61% 1.67% 1.10%
Return on Capital Employed (%) 16.86% 18.21% 15.02%
Return on Equity (%) 12.47% 12.82% 7.35%
EBITDA 1848.04 1545.77 1243.69
EBITDA (%) 4.38% 4.20% 4.31%
Net debt 5913.36 5119.07 3904.78
Net cashflow generated / (used) in operating activities 1267.06 -282.78 713.26
Debt to Equity (times) 1.06 1.05 0.93
Working Capital Days 28 28 30
Fixed Assets Turnover Ratio 15.51 17.74 13.94
Operating Margin 2.69 3.054 1.91

(In million, unless specified otherwise)

Key Performance Indicator
Particulars TCI Express Mahindra Logistics
FY23 FY22 FY21 FY23 FY22 FY21
Revenue from Operations 12410.1 10814.7 8439.9
Revenue from Operations Growth YOY % 14.75 28.14 -18.21 23.85 26.87 5.5
Restated profit for the year 1382.8 1288.4 1006 246.3 150.7 287.9
Restated profit for the year (%) 11.22% 11.91% 11.92% 0.48% 0.36% 0.88%
Return on Capital Employed (%) 32.26% 35.12% 33.94% 8.74% 6.96% 8.15%
Return on Equity (%) 24.60% 26.56% 26.09% 4.45% 2.70% 5.14%
EBITDA 2016.5 1829 1419.7 2756.1 1978.5 1489.4
EBITDA (%) 16.25% 16.91% 16.82% 5.37% 4.78% 4.56%
Net debt -159.5 -170.1 -262 2751.7 -938.3 -1713.4
Net cash flow generated / (used)

in operating activities

1465.1 1275.6 1188.5 1194 1909.8 2937
Debt to Equity (times) 0 0 0 0.72 0.07 0.05
Working Capital Days 58 65 66 4 18 30
Fixed Assets Turnover Ratio 3.77 4.01 4.16 26.68 15.72 11.56

 

CJ Darcl Logistics IPO Promoters & Shareholding of the Company

There are four promoter of CJ Darcl Logistics

  • Krishan Kumar Agarwal, (Managing Director)
  • Darshan Kumar Agarwal, (Joint Managing Director)
  • Roshan Lal Agarwal, (Joint Managing Director)
  • Narender Kumar Agarwal, (Joint Managing Director)
  • CJ Logistics Corporation

The promoters collectively hold 12,849,352 Equity Shares, representing approx 56.70% of paid-up equity share capital of company.

Name Number of equity shares % of the pre-Offer

 paid-up Equity Share Capital

Number of Equity Shares

offered in the Offer for Sal

Krishan Kumar Agarwal 396832 1.75 369000
Darshan Kumar Agarwal 162050 0.72 NIL
Roshan Lal Agarwal 328502 1.45 203502
Narender Kumar Agarwal 630897 2.78 230897
CJ Logistics Corporation 11331071 50 NIL
Total 12849352 56.7
Promoter Group
Krishan Kumar Agarwal & Sons* 625178 2.76 150000
Prem Lata Agarwal 845063 3.73 150000
Puneet Agarwal 864488 3.81 447489
Yogesh Agarwal 233802 1.03 150000
Darshan Kumar & Sons (HUF) 738109 3.26 336535
Vineet Aggarwal* 841833 3.71 NIL
Nitin Agarwal 199982 0.88 124982
Sushma Agarwal 1144879 5.05 529279
Ishant Agarwal 28599 1.32 173599
Nitesh Agarwal* 860129 3.8 425129
Samiha Agarwal 696285 3.07 446285
Nikhil Agarwal 584458 2.58 184458
Madhu Agarwal 498099 2.2 248099
Sanjay Kumar Agarwal 20000 0.09 NIL
Tek Chand Agarwal (HUF) * 289574 1.28 289574
Pushpa Bansal 23000 0.1 23000
Vineet Agarwal HUF 6000 0.03 6000
Nitin Agarwal HUF 6000 0.03 6000
Raj Bala Agarwal 235113 1.04 NIL
Vibha Gupta 162430 0.72 NIL
Total 9172421 40.49

 

Why Invest in CJ Darcl Logistics IPO?

While investing in an IPO-bounded company, one should check their fundamentals that help an investor to Visions Company’s financial performance and competitive strength which at last drives its business growth. Fundamental analysis apart from financial and competitive strength, also help you to know the risk factors that can affect the business operations and future prospects of the company. After evaluating the variables such strength weakness, financials, you may strike a balance and decide to invest or not invest in an IPO.

Competitive Strengths:

Leading in FTL transportation

CJ Darcl Logistics offers multimodal services across various verticals, including road/FTL transportation, rail/multimodal transportation, warehousing and distribution, integrated logistics solutions, and air cargo transportation.

With over 187 branch offices coving over 5000 locations and with 4,513 employees, DL Darcl is a leading in the full truck load (FTL) vertical work orders of FTL transportation totaling ₹ 38,575.59 million for fiscal 2024.

Vertical Revenue from operations attributable to vertical
Fiscal 2023 Fiscal 2022 Fiscal 2021
% % %
FTL transportation 77.95% 77.82% 81.75%
Rail/multimodal transportation 15.60% 14.89% 11.91%
Warehousing & Distribution and

Integrated Logistics Solution

5.28% 5.63% 4.51%
Shipping/ Coastal 0.78% 1.53% 0.70%
Air cargo 0.39% 0.24% 0.13%

 

Asset Light Business Model

The company operates on an 'asset-right' business model helps them to reduce capex requirements, mitigates operational risks, and follows a diversified capital deployment, resulting in improved efficiencies.

Under asset light model assets like commercial vehicles and containers are owned or provided by a large network of business partners. As of March 31, 2023, the company had a network of 820,333 partnered fleets and 496,981 business partners. The company maintains a healthy vendor ecosystem, with 306,849 and 127,470 vendors with a relationship of over 5 years and 10 years, respectively.

Longstanding relationship

Over the years, the company has established longstanding relationships with clients and therefore offering customized logistics solutions to a diverse set of customers and industries. As can be seen from table below, numbers of repetitive clients are increasing year over year, contributing to a good chunk of revenue to company.

Customer being

served for more than

Fiscal 2023 Fiscal 2022
Number of customers Revenue % of revenue from operation Number of customers Revenue % of revenue from operation
3 years 657 36929.79 87.60% 582 29862.18 81.12%
6 years 351 31696.23 75.18% 313 26566.54 72.16%
9 years 224 29123.58 69.08% 208 24623.3 66.89%

 

Well established promoter & management

The corporate promoter, CJ Logistics Corporation, who holds about 50%, share in business (As the date of DRHP) is listed on Korean exchange. The prompter group strengthens their capabilities and brings global competiveness to the business including packaged / e-commerce, improving sales approach and securing reliable delivery system.

Risks factors

Revenue concentration among clients

The company derives a significant portion of its revenue from its top 20 customers. Any loss of volume or loss of client among top 20 clients can adversely impact operations, financial condition and cash flows.

Top customers Revenue from operations attributable to customers
Fiscal 2023 Fiscal 2022 Fiscal 2021
Top 5 customers 38.47% 37.01% 34.16%
Top 10 customers 49.35% 46.95% 45.09%
Top 20 customers 57.66% 55.07% 54.71%

 

Dependent on the performance of specific industry

The company is dependent on the performance of specific industries in which its customers operate particularly metals and chemicals, both compromising 70% of their revenue stream. Any fluctuations in the performance of such industries or decrease in volume transported may result in a loss of such customers.

Industry Revenue from operations attributable to industry
Fiscal 2023 Fiscal 2022 Fiscal 2021
Metals & Mineral 54.60% 49.59% 47.00%
Chemicals 15.25% 16.59% 17.70%
FMCG 7.90% 9.45% 10.93%
Engineering and construction 2.85% 2.78% 3.16%
Auto and auto ancillary 3.66% 4.10% 4.74%
Agriculture 2.13% 2.29% 2.25%
Glass 2.44% 2.83% 3.24%
Others 11.17% 12.37% 10.69%

 

Inability to expand new businesses

Expansion of freight corridors project proposed by the government can affect their business directly or indirectly over the long term. So company’ failure to diversify its revenue streams exposes it to risk of concentration of revenue from FTL transportation and Rail/multimodal transportation verticals. As can be seen from table below, majority of their revenue is sourced from FTL transportation.

Industry Revenue from operations attributable to industry
Fiscal 2023 Fiscal 2022 Fiscal 2021
FTL transportation 77.95% 77.72% 82.75%
Rail/multimodal transportation 15.60% 14.89% 11.91%
Warehousing & Distribution and

Integrated Logistics Solutions

5.28% 5.63% 4.51%
Shipping/ Coastal 0.78% 1.53% 0.70%
Air cargo 0.39% 0.24% 0.13%

 

CJ Darcl Logistics IPO Grey Market Premium

The CJ Darcl Logistics IPO GMP is not yet known as the IPO price is not disclosed. Once the IPO is open, the price will be disclosed and as per the demand and supply of the share price in the open market, the CJ Darcl Logistics IPO GMP will be known. If the IPO price is undervalued, less GMP and as per the valuation of the stock overvalued there is less chance for higher GMP.

How to Apply for CJ Darcl Logistics Limited IPO?

If you have a share trading and demat account at Moneysukh, you can easily apply for the CJ Darcl Logistics Limited IPO. Just follow the steps given below.

Step 1: Once CJ Darcl Logistics Limited IPO opens you can apply online.

Step 2: Browse at trade.moneysukh.com and log in with your Moneysukh User ID & password.

Step 3: Now you have to visit the IPO section and select CJ Darcl Logistics Limited IPO.

Step 4: Here just fill in the required such as bidding price, quantity or lot and so on.

Step 5: Now you have to make the payment and your IPO application is successful.

How to Check CJ Darcl Logistics Limited IPO Allotment Status?

Just like applying, checking the CJ Darcl Logistics Limited IPO Allotment Status is also very easy and hassle-free through Moneysukh online platform. You have to just wait till the IPO is closed and the allotment is finalized. If you have been allotted any share it will be transferred into your demat account that you can sell after listing of the shares on the NSE or BSE stock exchanges.

Also Read: How to Increase the Chances of IPO Allotment

However, if IPO is oversubscribed and unfortunately if you have not been allotted any share, your IPO application money will be returned to your bank account or linked account where you have allocated the fund while applying for the CJ Darcl Logistics IPO.

Also Read: How to check IPO allotment status on NSE, BSE through Moneysukh

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