AVG Logistics Limited IPO

Apply 1
Avoid 0

(i) We are an organised third-party logistics service operator offering logistics solutions to a wide range of customers. We offer Full Truck Load (FTL) and “hub-and-spoke” transportation model and warehousing services to select clients with pan-India distribution network and automated technology systems. Our customers operate in various sectors across India, including automotive and heavy engineering, telecom, food and agro, fast-moving consumer goods (“FMCG”), paint and dairy. We believe our business model enables us to act as a service provider that can comprehensively cover our customers’ logistics requirements. We provide solutions that enable our customers to leverage our distribution network which optimises the performance, cost and efficiency of their supply chains, shortening their lead-time to market resulting in lower inventory costs to the customer.

(ii) We offer our customers services in three key areas (1) Transportation whereby we provide point-to-point, less-than truck-load, time-definite transportation services; (2) Warehousing whereby we provide warehousing, distribution and cold-chain warehousing; and (3) Value-added Services including, temperature-controlled logistics, supply chain solutions and cargo handling services at integrated check posts

(iii) As of September 30, 2017, we have five (5) trans-shipment centres at Guwahati, Bangalore, Hyderabad, Delhi-UP border, and Kundli (Delhi-Haryana border) and forty nine (49) branches across India, covering twenty three (23) States as of September 30, 2017. We operate two hundred sixty four (264) owned containerised vehicles which are GPS-enabled vehicles, of which eighty five (85) are refrigerated (reefer) trucks. We provide warehousing facilities to select customers and our warehouses are well connected to several manufacturing and consumption clusters in India aggregating to 3.54 lakh square feet. We have warehouses in Modinagar, Ghaziabad, Delhi and Panipat. We are in the process of setting up additional large format, multi-user warehouses in certain strategic locations and have acquired land at Agartala in Tripura and Mysore in Karnataka adding 1.08 lakhssquare feet which will enable the expansion of our warehousing space to 4.62 lakhssquare feet by April, 2019.

(iv) We have adopted technology and processes, including (i) a system on loading and unloading of orders with accuracy; (ii) GPS-enabled trucks that provide real-time visibility of shipments; (iii) data logger for controlling temperature in reefers and (iv) driver and truck management systems. Our warehouses are equipped with information and technology services like warehouse management systems (WMS) for optimal management and storage in the warehouse

AVG Logistics Limited IPO Stock Quote & Charts

101.00

-4.72%

  • Open: 102.00
  • High - Low: 102.00 - 101.00
  • Previous Close: 106.00
  • Total Traded Volume: 2400
  • Updated On: 14-Aug-2018

Objects of the AVG Logistics Limited IPO:

1. Setting-up Warehousing facilities at Agartala, Tripura, and Mysore (Mysuru), Karnataka 2. Working Capital Requirement 3. General Corporate Purpose and 4. To meet Issue related Expenses

AVG Logistics Limited IPO Details:

Open Date: Mar 28 2018
Close Date: Apr 03 2018
Total Shares: 3,090,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 33.06 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 105-107 Per Equity Share
Listing At: NSE Emerge
Listing Date: Apr 11 2018

Promoters And Management:

(i) Mr. Sanjay Gupta, aged 50 years, is the Managing Director & Chief Executive Officer of our Company. He has been the Director of our Company since incorporation. He is a Commerce Graduate from Maharashi Dayanand University , Rothak, Haryana. He has more than 30 years of experience in multi- model logistics, warehousing and retail logistics. His knowledge, good management skill, excellent decision making, controlling and strategic planning have courage to start his own entrepreneur. Even in a short span of time he has achieved an unexpected growth in the business. (ii) Ms. Asha Gupta, aged 49 years, is the Executive Director of our Company. She has been the Promoter & Director of our Company since incorporation. She is an Art’s Graduate from Maharashi Dayanand Univeersity, Rothak, Haryana. She has more than 10 years of experience in logistics and warehousing. Because of her ability, experience, inter personnel skill and expert in marketing strategies, she has always achieved a steep growth in transportation business and has always participated in the competitive bidding of orders.

Capital Structure:

Authorized Share Capital ( 1,20,00,000 shares at FV@10) 12 cr
Issued, Subscribed,& Paid-up Share Capital Before Issue (72,08,000  Shares at FV@10) 7.2080 cr
Present Issue (30,90,000 Shares at FV@10) 3.090 cr
Reservation for Market Maker (1,54,800 Shares at FV@10) 15.48 lakh
Net Issue to Public (30,90,000-1,54,800=  29,35,200 Shares) 2.9352 cr
QIB Quota-14,66,400 50%
HNI Quota-Not less than 4,41,600 15%
Retail Quota-Not less than 10,27,200 35%
Paid Up Share Capital after the issue 10.298 cr

Financials of AVG Logistics Limited IPO as per DRHP:

 1. Balance Sheet Snippet[ All Calculation for FY 16-17]
       (i) Shareholders’ Fund[Equity] Value 2181.77 lakh
      (ii) Asset 8353.23 lakh
      (iii) Liability 6171.46 lakh
      (iv) Debt/Equity 2.83(high)
      (v)  Net Worth(Asset- Liability) 2181.77 lakh
      (vi)  RONW(PAT/Net Worth) 21%
     (vii) P/B 2.09(reasonably priced)
2. Profit n Loss Snippet
     (i) The Revenue of the company in last 4 years is growing at CAGR of 20%[Excellent]
    (ii) PAT of the company in last 4 years is growing at CAGR of 23%[Excellent]
    (iii)Margins(PBT/Reveune): 2.8 to 3.2% in last 4 years.
    (iv) Annualized EPS(post issue)=  6.7[Excellent]
    (v)  Annualized P/E(post issue)=15[reasonably priced] at the cutoff price of 107
3. Cash Flows Statement( figures in lakhs)
Particulars FY17 FY16 FY15 FY14 FY13
(i) Net Cash Generated from Operation 817.19 79.32 787.13 207.83 -202.56
(ii) Net Cash Generated from Investment -921.4 -14.72 -1176.83 -597.27 -398.04
(iii) Net Cash Generated from Financing Activity 267.29 -47.1 390.9 384.96 613.6
(iv) Total[ (i)+(ii)+(iii) ] 163.08 17.5 1.2 -4.48 13
(v) Cash and Cash Equivalents at the Beginning of the Year 41.53 24.03 22.82 27.3 14.85
(vi) Cash and Cash Equivalents at the end of the Year
204.61
41.53
24.02
22.82
27.85
*Note- The company has shown positive cash flows in last 4 years which augur well for sustained growth in future.

Comparison With Peers:

Name of the Company FV EPS PE
AVG Logistics Ltd 10 6.7 15
Sical Logistics Ltd 10 8.19 27.28
Total Transport Systems Ltd 10 5.59 8.19
VRL Logistics 10 7.72 51.44
Tiger Logistics Ltd 10 9.73 20.23

Recommendation on AVG Logistics Limited IPO:

The company valuation in terms of PE looks reasonably priced as compared to listed peers and the company has shown consistent growth in terms of Revenue and Profit.
Rating: 7/10. 1-5: Fair 5-7: Good 7-10: Excellent
 

Lead Manager of AVG Logistics Limited IPO:

  1. Systematix Corporate Services Limited

Registrar of AVG Logistics Limited IPO:

  1. Link Intime India Private Limited

Company Address:

AVG Logistics Limited Shop No. 25 DDA Market, Savita Vihar Delhi 110092 Phone: +91 11 4567 4071 Fax: +91 11 22124356 Email: compliances@avglogistics.com Website: www.avglogistics.com

Bid Details of AVG Logistics Limited IPO as on
03-Apr-2018 17:00:00 IST

Category No.of shares offered No. of shares bid
1,545,000 4,059,600
1,545,000 1,586,400
- -
3,090,000 5,646,000
QIBs Yes
QIBs+HNIs Subscription 2.16X
Retail Subscription 1.03X
Total Subscription 1.83X

Discussion on AVG Logistics Limited IPO:

    Recovered nicely… Going down probably because of profit booking..

    The company has come up with reasonable valuation. The Financials of the company are excellent. It is a good IPO to apply.