Rapid Multimodal Logistics Limited IPO

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Rapid Multimodal Logistics Limited, based in Chennai, specializes in providing comprehensive logistical solutions primarily catering to the B2B segment. The company offers end-to-end logistics services, managing the transportation of raw materials and finished goods across various supply chains. Their services encompass single and multimodal transportation, utilizing a combination of road, rail, and sea transport to optimize efficiency and meet specific shipment requirements.

Industry Coverage and Expertise

Rapid Multimodal Logistics serves a wide range of industries, including Glass, Plywood, Paper, Edible Oil, Gypsum Boards, Iron & Steel, Scraps, Tiles, Sanitary, and Liquor. The company’s ability to tailor logistics and supply chain solutions to the unique demands of each industry highlights their adaptability and commitment to delivering efficient, customized services. This broad industry expertise allows them to navigate the challenges of diverse business landscapes effectively.

Nationwide Reach and Clientele

Rapid Multimodal Logistics operates on a PAN India level, with an extensive client base across the country. The company’s services are particularly strong in regions such as Chennai, Balasore, Sri City (Tada), Krishnapatnam, Vizag, and Morbi. This geographical diversity demonstrates the company’s capability to cater to the unique needs of clients nationwide, solidifying its reputation as a top-tier logistics provider.

Corporate Structure

The company was incorporated as a private limited company on July 4, 2020, under the name “Rapid Multimodal Logistics Private Limited.” Following a special resolution passed by its shareholders, it was converted into a public limited company, and the name was changed to “Rapid Multimodal Logistics Limited” on November 6, 2023.

With a strong foundation in the logistics industry, a commitment to excellence, and a focus on innovation and customer satisfaction, Rapid Multimodal Logistics Limited is well-positioned for continued growth and success in the dynamic logistics sector.

Objects of the Rapid Multimodal Logistics Limited IPO:

The company intends to utilize the Net Fresh Issue Proceeds for the following Objects (“Objects of the Issue”): i. Working Capital Requirements ii. General Corporate Purposes.
DRHP of Rapid Multimodal Logistics Limited IPO
RHP of Rapid Multimodal Logistics Limited IPO

Rapid Multimodal Logistics Limited IPO Details:

Open Date: Aug 22 2024
Close Date: Aug 27 2024
Total Shares: 1,011,200
Face Value: ₹ 10 Per Equity Share
Issue Size: 8.49 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 84 Per Equity Share
Listing At: BSE SME
Listing Date: Aug 30 2024

Promoters And Management:

Mr. Narayan Agarwal, aged 61 years, is the founding Promoter and is designated as Managing Director of the Company. He was appointed on the Board of the Company since incorporation and his designation was changed to Managing Director w.e.f. December 01, 2023. He has experience of more than 18 years in the Logistic Sector. Apart from Rapid Multimodal Logistics Limited he also runs his own proprietorship firm. He has completed his Bachelor of Commerce in the year 1983 from Calcutta University. His extensive experience in Strategic Planning and Execution, Team Leadership and development, Operations Management, Social Responsibility, Client Relationship serve as a cornerstone of corporate leadership, leading profound insight and strategic vision to the operations of the Company. Mr. Manoj Goel, aged 47 years, is the Executive Director of the Company. He was appointed on the Board of the Company since Incorporation. Later, his designation was changed from Non-Executive Director to Executive Director w.e.f December 01, 2023. He has completed his Bachelor of Commerce from Calcutta University in the year 1996. He has around 18 years of experience in Logistics Sector. He is proficient in strategic planning, adept team leadership, and driving business growth within the logistics domain. In the company he is responsible for looking into overall affairs and operations of the Company Mr. Summit Agarwal, aged 29 years, is an Executive Director and Chief Financial Officer of the Company. He has been appointed on the Board of the Company since incorporation. He has completed Bachelor’s degree in commerce from University of Madras in the year 2015 and also, he is a qualified Chartered Accountant. He has around 3 years of experience in Logistics sector. He is an Executive Director of the Company and was further appointed as a Chief Financial Officer w.e.f. November 30, 2023. He contributes to the company by handling the overall business affairs of company including devising investment strategies and overall development of the business of the company.

Financials of Rapid Multimodal Logistics Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 4,771 7,273 7,182
Other Income 3 23 2
Total Revenue 4,774 7,296 7,184
Cost of Operation 4,447 6,673 6,598
Employees Benefit Expenses 62 152 148
Other Expenses 121 181 161
EBITDA 145 291 278
OPM (%) 3.03% 3.98% 3.86%
Depreciation & Amortisation 4 9 9
EBIT 141 282 269
Finance Cost 13 18 26
PBT 127 264 243
Tax 32 63 64
PAT 95 200 179
NPM (%) 2.00% 2.75% 2.49%
No.of Shares 38.11 38.11 38.11
EPS 2.50 5.26 4.70

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Rapid Multimodal Logistics Limited 72 2 4.70 17.9 84 32
Chartered Logistics Limited 72 0.7 0.07 45.4 10 99
Shree Vasu Logistics Limited 123 3 2.72 81.0 223 255
* All the data is as per FY24.

Recommendation on Rapid Multimodal Logistics Limited IPO:

1. Rapid Multimodal Logistics Limited core business revolves around facilitating the seamless movement of raw materials and finished goods across the supply chain, from the point of origin to the final destination. They offer both single and multimodal transportation services, integrating multiple modes of transport—such as road, rail, and sea—within a unified supply chain to optimize efficiency and cater to the unique demands of each shipment. 2. Their services encompass all aspects of logistics, including shipment planning, route optimization, carrier selection, documentation, containerization, tracking, communication, coordination, last-mile delivery, and performance evaluation. 3. Their ability to provide tailored logistics solutions ensures that we meet the specific needs of a diverse range of industries, including glass, plywood, paper, edible oil, gypsum boards, iron & steel, scraps, tiles, sanitary products, and the liquor industry. 4. Geographical Reach and Client Base: They operate on a PAN India level, delivering our services across the domestic market. Their extensive client base, which includes direct orders from various regions such as Chennai, Balasore, Sri City (Tada), Krishnapatnam, Vizag, and Morbi, is a testament to their commitment to excellence. 5. SWOT Analysis Strengths: i. Versatile Transport Alternatives                        ii. Robust Collaborations with Vendors iii. Expertise in Streamlining Routes                    iv. Strategic Alliances with Unions Weaknesses: i. Reliance on Vendor Dependability                    ii. Constrained Door-to-Door Container Services iii. Complexity in Coordination Opportunities: i. Exploration of New Markets                              ii. Embracing Sustainable Logistics Practices iii. Integration of Cutting-edge Technology        iv. Growing E-commerce Market Threats: i. Intense Competition                                           ii. Rising Operational Costs iii. Technological Disruptions                              iv. Global Economic Uncertainties v. Security Concerns 6. Competition Analysis Rapid Multimodal Logistics Limited faces intense competition in the multimodal logistics industry. This competition spans both domestic and international markets, involving global logistics giants with extensive networks and specialized regional entities. 7. The Revenue has Increased from Rs.48 Crores in FY22 to Rs.72 Crores in FY24. 8. The EBITDA has Increased from 1.4 Crores in FY22 to 2.7 Crores in FY24. 9. The PAT has Increased from 95 Lakhs in FY22 to 1.7 Crores in FY24. 10. As per FY24, CFO/EBITDA is 1.03, and EPS is 4.70, 11. Market Capitalization is 32 Crores and P/E is 17.9x based on FY24.

Lead Manager of Rapid Multimodal Logistics Limited IPO:

  1. Gretex Corporate Services Private Limited

Registrar of Rapid Multimodal Logistics Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Rapid Mutlimodal Logistics Limited New No.44, Old No.78 Shrofforchards Chennai - 600010 Phone: +91 044264 40181 Email: info@rapidlogistics.in Website: http://www.rapidlogistics.in/

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