Deccan Transcon Leasing Limited IPO

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Deccan Transcon Leasing Limited, incorporated in February 2007, has established itself as a prominent player in the freight and shipping services industry, providing comprehensive end-to-end logistics solutions. Their services encompass domestic logistics of tank containers, tank fleet management, custom clearance, transportation, and Non-Vessel Operating Common Carriers (NVOCC) services. They primarily focus on leasing tank containers and offering logistics and supply chain solutions across various sectors. Specializing in the transportation of bulk liquids and hazardous chemicals, our operations are supported by a robust agency network and a strong partnership base with global reach.

Core Services

i. Tank Container Leasing & Logistics: They specialize in leasing tank containers and providing logistics solutions that cater to the transportation of bulk liquids and hazardous chemicals. Their tank containers serve as the primary mode of transport, ensuring safe and efficient handling of these materials.

ii. Domestic Logistics & Fleet Management: Their services include the logistics of tank containers within the domestic market, offering fleet management solutions tailored to meet specific customer needs. This includes the end-to-end management of tank containers, from leasing to transportation and maintenance.

iii. Custom Clearance & Transportation: They provide custom clearance services that ensure the smooth transit of goods across borders. Their transportation services cover all necessary modes, including sea, rail, and road, ensuring comprehensive coverage for their clients’ logistics needs.

iv. NVOCC Services: As a Non-Vessel Operating Common Carrier, they offer global shipping solutions without owning vessels, facilitating the transportation of goods worldwide through their extensive network of agents and partners.

Market Presence and Strengths

One of their key strengths lies in our extensive agency network, developed through years of industry experience. This network gives them access to shippers worldwide, allowing them to cater to the diverse logistics needs of their clients globally. Their global partnerships, coupled with their subsidiary and associate companies, enable them to offer complete logistics solutions under one roof.

Conclusion

With a history of consistent service and a strong market presence, Deccan Transcon Leasing Limited is well-positioned to continue its growth and expansion in the logistics and shipping industry. Their comprehensive service offerings, supported by a skilled workforce and robust fleet, enable them to meet the diverse needs of their clients, reinforcing their reputation as a trusted partner in logistics solutions.

Objects of the Deccan Transcon Leasing Limited IPO:

The Company proposes to utilize the net proceeds from the Offer towards funding the following objects and achieve the benefits of listing on the NSE Emerge platform of the National Stock Exchange of India Limited: i. Funding capital expenditure requirements towards procurement of Tank Containers. ii. Funding working capital requirements of the Company; and iii. General corporate purposes. Total number of share issue :- i. Fresh issue is 5,524,000 shares, ii. Offer for sale is 500,000 shares.
DRHP of Deccan Transcon Leasing Limited IPO
RHP of Deccan Transcon Leasing Limited IPO

Deccan Transcon Leasing Limited IPO Details:

Open Date: Sep 13 2024
Close Date: Sep 18 2024
Total Shares: 6,024,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 65.06 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 102 - 108 Per Equity Share
Listing At: NSE Emerge
Listing Date: Sep 23 2024

Promoters And Management:

Jaidev Menon Parath, aged 67, is the Promoter, Chairman, and Whole Time Director of the Company, with 45 years of experience, including 25 years in Shipping & Logistics. An engineering graduate from Osmania University, he joined the company in 2014. His previous roles include COO of the ISO Tank Division at Chakiat Agencies Private Limited and Depot Supervisor at Hindustan Petroleum. He has been instrumental in expanding the business, overseeing the sourcing and procurement of tank containers and establishing a global network of agents. Karthika Menon, aged 59, is the Promoter and Whole Time Director of the Company, associated since its inception. She holds a provisional bachelor's degree in arts from Osmania University and has over 12 years of experience in Human Resource management and international trade. As head of our HR department, she has led the organization of workshops and training programs for employees, significantly contributing to their development. Miriyala Shekhar, aged 47, is the Promoter and Whole Time Director of the company, holding a provisional Bachelor of Commerce degree from Osmania University. With over 20 years of experience in logistics and marketing, he has been instrumental in establishing the logistics operations in the Far East and Africa and developing outbound markets from southern India. Since joining the company in 2015, he has leveraged his industry expertise and international trade knowledge to explore global market opportunities. Previously, he served as Assistant Manager in the shipping division at Chakiat Shipping Services Pvt. Ltd.

Financials of Deccan Transcon Leasing Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 15,290 17,960 15,256
Other Income 29 102 108
Total Revenue 15,319 18,062 15,364
Operating Expenses 13,721 15,729 12,221
Employees Benefit Expenses 430 580 776
Other Expenses 264 487 463
EBITDA 904 1,265 1,904
OPM (%) 5.90% 7.00% 12.39%
Depreciation & Amortisation 120 136 184
EBIT 784 1,129 1,720
Finance Cost 134 186 307
PBT 678 1,086 1,541
Tax 158 230 359
PAT 519 856 1182
NPM (%) 3.39% 4.74% 7.69%
No.of Shares 227.23 227.23 227.23
EPS 2.28 3.76 5.20

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Deccan Transcon Leasing Ltd 153 12 5.20 20.8 108 245
Lancer Containers Lines Ltd 633 58 2.55 19.2 45.4 1,081
S J Logistics (India) Ltd 271 23 15.61 42.0 655 949
* All the data is as per FY24.

Recommendation on Deccan Transcon Leasing Limited IPO:

1. Deccan Transcon Leasing Limited (formerly known as Libenil Logistics Private Limited) is a comprehensive logistics service provider specializing in freight and shipping solutions. The company has evolved to offer a wide range of services, including domestic logistics for tank containers, tank fleet management, customs clearance, transportation, and Non-Vessel Operating Common Carrier (NVOCC) services. 2. Core Services i. Tank Container Leasing and Logistics Solutions ii.  NVOCC Services iii. Comprehensive Freight and Shipping Solutions 3. Market Presence and Network The network grants the company access to shippers worldwide, enabling it to serve clients across the globe effectively. Furthermore, the company has established a robust network of partners with global reach, alongside its own Subsidiary and Associate companies, to deliver complete end-to-end logistics solutions. 4. Competition The logistics industry in which Deccan Transcon Leasing Limited operates is highly fragmented, with numerous small and medium-sized enterprises vying for market share.  Major competitors include Lancer Containers Limited and S J Logistics (India) Limited, among other national and international players. 5. The Revenue has Decreased from Rs.152.9 Crores in FY22 to Rs.152.5 Crores in FY24. 6. The EBITDA has Increased from 9 Crores in FY22 to 19 Crores in FY24. 7. The PAT has Increased from 5 Crores in FY22 to 3.5 Crores in FY24. 8. As per FY24, CFO/EBITDA is 1.07, and EPS is 5.20, 9. Market Capitalization is 245 Crores and P/E is 20.8x based on FY24.

Lead Manager of Deccan Transcon Leasing Limited IPO:

  1. Unistone Capital Pvt Ltd

Registrar of Deccan Transcon Leasing Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Deccan Transcon Leasing Limited Suite No 507, 5th floor Image Capital Park, Image Garden Road Madhapur, Shaikpet, Hyderabad- 500081 Phone: 040-40146828 Email: compliance@deccantrans.c Website: https://www.deccantrans.com/

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