Destiny Logistics & Infra Limited IPO

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Destiny Logistics & Infra Limited services are mainly in the domestic market, more specifically in the state of West Bengal. It procures third-party fleets both contractually and in the spot market. The company offers transportation management services and arranges for the third party operator to handle freight related services.

It provides a complete range of services like packaging, loading, transportation, unloading, and unpacking items to facilitate our customers with end-to-end solutions. This asset-light business model allows for the scalability of services as well as the flexibility to develop and offer customized logistic solutions across diverse sectors. It provides end-to-end safe mobility and delivery of items.

The company has also diversified into infrastructure development activity as a new addition to its line of business activity and started the “Construction of Storm Water Drainage Scheme Project” in West Bengal. The total contract value awarded is Rs. 58.27 crores”.

Competitive Strengths
i. Organizational stability
ii. Smooth flow of operations
iii. Well-defined organizational structure

Objects of the Destiny Logistics & Infra Limited IPO:

The Issue includes a fresh Issue of 26,94,000 Equity Shares of the Company at an Issue Price of ₹20/- per Equity Share aggregating to ₹538.80 Lakhs. Net proceeds from the issue are to used in: i. To meet the working capital requirements of the company ii. To meet the Issue Expenses iii. General Corporate Purposes
DRHP of Destiny Logistics & Infra Limited IPO

Destiny Logistics & Infra Limited IPO Details:

Open Date: Sep 30 2021
Close Date: Oct 05 2021
Total Shares: 2,694,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue
Issue Size: 5.39 Cr.
Lot Size: 6000 Shares
Issue Price: ₹ 20 Per Equity Share
Listing At: NSE Emerge
Listing Date: Oct 13 2021

Promoters And Management:

i. Mrs. Rekha Bhagat, aged about 37 years is having an experience of 11 years of experience in the business of Supplying Goods & Services to Indian Railways and other Private organizations and also having the experience of carrying on the business of Wholesale & Retail dealers of clothing. In the year 2010, Mrs. Bhagat started her own business as proprietor of a Proprietorship firm named Dynamic Enterprise, and subsequently, she has started another business as proprietor of Proprietorship firms named Dynamic Food Supplier and Dynamic Construction. Being a Managing Director Mrs. Bhagat plays a key role in the overall management of the business affairs of the Company. ii. Mr. Mithilesh Kumar Jha, aged 52 Years, is an Executive Director of the company since incorporation. He is also one of the shareholders of the Company. His main job responsibility is to ensure the efficient performance of all departments in the organization. He acts as a connecting link between the senior management and the employees. He provides motivation to the workforce and makes them realize the goals of the organization. He looks after the company’s daily routine and ensures efficiency. iii. Mr. Jugal Kishore Bhagat, aged 45 years, is the Founder Promoter of the company. He has completed his Graduation in Commerce in the year 1996. He started his career after completing his graduation in a logistics company for 3 years dealing in transportation and clearing of goods. In 1999, he decided to start his own business as a Vendor for transporting and supply goods. He also started supplying food and commodities to the Indian Navy and the Indian Army. Gradually he also started supplying manpower to the Indian Navy and the Indian Army.

Financials of Destiny Logistics & Infra Limited IPO:

Particulars (in Lakhs) Mar 21 Mar 20
Revenue from operations 1005 674
Cost of Materials Consumed 972 647
Change in Inventories -42 -
Employee Benefit Expense 10 5
Other expenses 8 4
Operating Profit 57 18
OPM% 5.67% 2.67%
Finance costs 13 10
Depreciation and amortisation 1.5 -
Profit before tax 40.90 6.90
Profit for the year 30 5

Comparison With Peers:

As per DRHP,  none of the listed companies in India offer products or services across the various business segments in which this company operates. Hence a strict comparison is not possible.

Recommendation on Destiny Logistics & Infra Limited IPO:

Review and Recommendation of Destiny Logistics & Infra Limited IPO by InvestorZone is 3/10 1. Company has shown good growth in revenue over the last 3 years, specially in FY21.. 2. The problem with rise of stupendous revenue in FY21 is, the trade receivables have increased to 3.58 Crores, that translates into receivables days of 132.... 3. The rise in trade receivables has no impact on PAT and EPS, but has direct impact in cash flow from operations. The cash flow from operations is negative in FY21. And, to compensate that, their Short-term debt has increased from 90 lac to 3.5 Crores. 4. Short-term loan and advances has also increased from 10 lac to 2.46 Crores...

Lead Manager of Destiny Logistics & Infra Limited IPO:

  1. Finshore Management Services Limited

Registrar of Destiny Logistics & Infra Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

Destiny Logistics & Infra Limited 375, Dakshindari Road, Kolkata – 700 048 Phone: 033-40087463 Email: cs@destinyinfra.in Website: http://www.destinyinfra.in/

Discussion on Destiny Logistics & Infra Limited IPO:

1 Comment

    Total Shares outstanding before IPO = 50,00,000

    Total Shares to be issued = 26,94,000

    Total shares after IPO = 76.94 lakh

    PAT (FY21) = 40.90 Lakh

    EPS = 1.89x

    P/E = 10.58x….reasonably priced..

    Reply

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