GConnect Logitech and Supply Chain Limited IPO

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The Company specializes in surface logistics services, focusing on goods transport across various sectors. They cater to both logistics companies and direct customers, offering a comprehensive range of services including bulk load transportation, Full Truck Load (FTL) services, and dedicated load services catering to multiple pickups and drops. Their operations are particularly geared towards serving large companies, retailers, traders, and industrial clients needing to transport bulk goods within India, covering a diverse clientele in industries like metals, fabrics, FMCG, auto components, chemicals, and pharmaceuticals.

A significant aspect of their business model is their asset-light strategy, where they partner with third-party vehicle owners to supply the necessary assets for their operations, including customized and containerized vehicles. This approach allows them to remain flexible and responsive to the changing needs of their customers. As of October 30, 2023, they have arrangements with owners of over 20 vehicles of various sizes and capacities, aligning with their customer requirements.

The foundation of their company was marked by the acquisition of M/s. Prithvi Enterprise, a proprietorship of their promoter, Jigar Vinodbhai Sheth, through a Business Transfer Agreement dated February 28, 2023. With more than 12 years in the logistics service industry, their promoters, Mr. Jigar Vinodbhai Sheth and Mr. Vinod Venilal Sheth, have maintained their leadership roles since the company’s inception. Operating primarily in the state of Gujarat, they aim to expand their services without entering into binding contracts with their customers, thereby maintaining flexibility and a customer-centric approach. Their future plans include potentially owning vehicles to further enhance their service capabilities while continuing to leverage their asset-light model for operational efficiency.

Objects of the GConnect Logitech and Supply Chain Limited IPO:

The Company proposes to utilize the Net Proceeds from the Issue towards the following objects: i. Purchase of Vehicles and Body Building; ii. Finance the Website Development and App Designing; and iii. General Corporate Purpose.

GConnect Logitech and Supply Chain Limited IPO Details:

Open Date: Mar 26 2024
Close Date: Mar 28 2024
Total Shares: 1,401,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 5.60 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 40 Per Equity Share
Listing At: BSE SME
Listing Date: Apr 03 2024

Promoters And Management:

Mr. Vinod Venilal Sheth is the Promoter and Non-Executive Director of the Company. He has been associated with the Company since its incorporation as a Director and Promoter. He has completed his Secondary School Education from Shri Vadva Central Madhyamik School. He has more than 10 years of experience in logistics industry. He currently overlooks overall management of the business of the Company. Mr. Jigar Vinodbhai Sheth is the Promoter and Managing Director of the Company. He has been associated with the Company since its incorporation as a Director and Promoter. He holds a Master Degree in Science from Bhavnagar University. He is having experience of 10 years in the logistics Industry. He presently looks after strategic planning in the Company. Mr. Parthivkumar Bharatbhai Barad is an Independent Non-Executive Director of the Company. He holds a Bachelor of Commerce (Accounts & Finance) degree from Maharaja Krishnakumarsinhji Bhavnagar University. He has experience of more than 4 (four) years in the field of finance and accounting.

Financials of GConnect Logitech and Supply Chain Limited IPO:

Particulars ( In Lakhs )
2023
6M-FY24
Revenue from Operations 101 213
Other Income 0 0
Total Revenue 101 213
Cost of services 73 133
Consumed - Spares, Parts and consumables 0 16
Employees Benefit Expenses 10 16
Other Expenses 3 14
EBITDA 14 33
Depreciation & Amortisation 0 3
Finance Cost 0.02 0.04
EBIT 14 31
OPM (%) 14.34% 15.70%
PBT 14 31
Tax 4 8
PAT 11 23
NPM (%) 10.75% 10.74%
No.of Shares 37.19 37.19
EPS 0.29 0.61

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Gconnect Logitech and Supply Chain Limited 1 0.1 0.29 136.9 40 15
Ritco Logistics Limited 748 25 10.10 17.0 216 531
VRL Logistics Limited 2,649 323 36.58 39.1 570 5,009
Shreeji Translogistics Limited 186 10 1.38 11.9 28.8 201
* All the data is as per FY23.

Lead Manager of GConnect Logitech and Supply Chain Limited IPO:

  1. Fedex Securities Limited

Registrar of GConnect Logitech and Supply Chain Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

GConnect Logitech and Supply Chain Limited Shop No. 6, Sadguru Complex Nari Chowkadina Bhavnagar – 364 001, Phone: +91 93777 74949 Email: contact@gconnectlogitech.com Website: https://www.gconnectlogitech.com/

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