Kaushalya Logistics Limited IPO

Apply 0
Avoid 0
  1. Company Origins (2007): The journey began in 2007 with the incorporation of Kaushalya Buildcon Private Limited, focusing on the construction of commercial and residential buildings. Later, the company diversified into providing logistic support to the cement industry.
  2. Logistic Support to Cement Industry (2010): The company expanded its business to provide logistic support to Dalmia Cement Bharat Limited. It started with four warehouses and currently maintains 70 warehouses in states like Bihar, Tamil Nadu, and Kerala.
  3. Leadership Change (2011): The management and control of the company were taken over by the Poddar Group, led by Uddhav Poddar, in 2011. The Poddar Group is a diversified conglomerate involved in construction, warehousing, logistics, commercial space development, and e-commerce.
  4. Name Changes (2016 and 2023): The company changed its name to Kaushalya Logistics Private Limited in 2016, focusing on logistics operations. Subsequently, it became Kaushalya Logistics Limited in May 2023.
  5. Integrated Logistics and C&F Services Provider: The company operates in three major verticals: logistics support for Dalmia Cement, retail/e-commerce business (selling electronics and white goods online), and commercial real estate (owning and renting out commercial shops in Udaipur).
  6. Business Model: The company serves as Clearing and Forwarding agents for major cement companies, including Dalmia Cement Bharat Limited. It provides end-to-end support, handling various logistics and warehouse management tasks, leading to cost savings and operational efficiency for its customers.
  7. Asset Light Model: The company operates on an asset-light model, utilizing warehouses owned or rented by customers and hiring transport fleets based on customer specifications.
  8. Online E-commerce Business (Since January 2022): The company became sellers of white goods and electronics on a major online e-commerce platform. It collaborates with authorized distributors and manages activities related to product receipt, storage, invoicing, dispatch, and collection of payments through third-party agencies.
  9. Investment in Pre-Rental Properties: The company has invested in pre-rental properties, owning 18 retail shops in a commercial project in Udaipur, providing a steady rental income.
  10. Expansion Plans: The company is looking to expand its business into other logistics verticals such as warehousing and transportation. Leveraging its strong relationships, particularly with Dalmia Cement, it is actively exploring new business opportunities.

Objects of the Kaushalya Logistics Limited IPO:

The company proposes to utilise the Net Proceeds for the following: Repayment of Unsecured Loan Funding of working capital requirements of the company; General Corporate Purposes.

Kaushalya Logistics Limited IPO Details:

Open Date: Dec 29 2023
Close Date: Jan 03 2024
Total Shares: 4,880,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Issue
Issue Size: 36.60 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 71 - 75 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jan 08 2024

Promoters And Management:

Uddhav Poddar aged 41 years, is a Promoter and Managing Director of the Company. He has completed his Bachelor of Commerce from Delhi University. He oversees managerial and operational functions of entire group since last 15 years. He is also the supreme authority in all operational, financial and marketing proposals by the teams. His major roles include administering business strategies to streamline company growth and ensure smooth running of existing operations. FORBES India in one the recent edition featured him as a rising star in the Real Estate Industry building his own legacy. He also chairs the committee for North India of SCAI. Dainik Bhasker featured him as “100 Change Makers in Udaipur”, while Reality Plus chose him as “Real Estate top 100 influencers and top COX’s”. He is esteemed member of the managing committee in PHDCCI (PHD Chamber of Commerce & Industry). The youngest speaker and the only one from the real estate industry to be invited to speak at the 5th edition of UAE – India Economic Forum in Dubai. Ram Gopal Choudhary aged 71 years, is a director of the Company. He has completed his Bachelor of Science and Mechanical Engineering from Birla Institute of Technology, Mesra, Ranchi, in the year 1972. He possesses more than 4 decades of experience in Plant Operations and other allied activities. He oversees the Company Logistics operations. His responsibilities include acting as a mediator between other Directors and Company team heads. He supervises all client interactions and manages the client relations Sunira Chamaria has vast experience as an entrepreneur and director of many companies. She has been involved in various startups and social organisations. She was also Chairperson of FICCI FLO (Women Wing of FICCI) Kolkata Chapter for the period 2020-21. Currently she is a director in five private limited companies involved in various sectors, other than the Company. She is also a designated Partner in Abundant Properties LLP.

Financials of Kaushalya Logistics Limited IPO:

Particulars ( In Crore )
Revenue from Operations 31 60 625 568
Other Income 2 3 8 2
Total Revenue 33 64 632 571
Purchases of Stock-in-trade 0 21 547 528
Change in Inventorie 0 -4 -21 1
Operating Expenses 22 28 37 9
Employee benefits expenses 4 4 5 2
Other Expenses 2 6 49 27
EBITDA 5 8 14 4
Depreciation & Amortisation 0.3 0.3 0.2 0.1
Finance Cost 1 3 4 1
EBIT 5 8 14 4
OPM (%) 15.02% 12.58% 2.21% 0.70%
PBT 4 5 9 3
Tax -1 -1 -2 -0.7
PAT 3 4 7 2
NPM (%) 8.98% 5.91% 1.12% 0.38%
No.of Shares 1.85 1.85 1.85 1.85
EPS 1.61 2.03 3.80 1.15

Comparison With Peers:

Notes: - There are no listed companies in India that are engaged in a business similar to this company.

Recommendation on Kaushalya Logistics Limited IPO:

Review and Recommendation of Kaushalya Logistics Limited IPO by IZ team is 5/10 1. Kaushalya Logistics Limited, originally established as Kaushalya BuildconPrivate Limited in 2007, has evolved from a construction-focused company into a diversified conglomerate with significant interests in logistics, e-commerce, and real estate. The company initially concentrated on building commercial and residential structures before strategically pivoting to logistic support in the cement industry. Today, it manages 70 warehouses across India, primarily for Dalmia Cement Bharat Limited, and has expanded its business to include e-commerce sales of electronics and white goods, and investment in commercial real estate. 2. The main source of income is coming from e-commerce business where they do the trade of Television, Washing Machine, Refrigerator. In the year Fy23, they sold these items worth INR 630 Cr. However, as this is the trading business the margins are low. And, this is highly competitive market. 3. Second main source of income is the "Carry and forwarding Agent" for Dalmia Bharat cement wherein they manage their warehouses and take of all the logistics work. Please note they are also dependent on third party for logistics. This business is entirely dependent on growth of Dalmia Bharat Cement unless they venture to provide services to other cement players. In FY23, they earned a revenue of INR 51 Cr from this business. 4. Third source of income is the rental income from shops they purchased in Udaipur. This income is INR 3.47 Cr in Fy23. 5. They are raising funds for working capital requirement for e-commerce business and to pay unsecured loan. 6. In a nut shell nothing looks great in the business model of this company.

Lead Manager of Kaushalya Logistics Limited IPO:

  1. Khandwala Securities Limited

Registrar of Kaushalya Logistics Limited IPO:

  1. Skyline Financial Services Private Ltd

Company Address:

Kaushalya Logistics Limited 19, Community Centre First and Second Floor, East of Kailash, New Delhi-110065 Phone: +91-011-4132-6013 Email: info@kaushalya.co.in Websitehttps://www.kaushalya.co.in/

Discussion on Kaushalya Logistics Limited IPO:

Leave a Reply