Zeal Global Services Limited IPO

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i. Zeal Global is engaged in the business of providing logistics solutions in the Air Cargo Industry. They have been operating as General Sales and Service Agent (“GSSA”) and sales partner for airline in the region. The Company realizes that clients have specific requirements with regards to their shipments. They therefore spend considerable time with clients individually to understand their specific requirements. The approach is to bring economical solutions to the client’s freighting needs through – excessive aircraft, load and destination compatibility analysis to suit ever changing needs of various industries such as fashion, pharmaceuticals, automotive and industrials.

ii. Their promoters have a combined experience of ~ 18 years in the air cargo industry. Driven by the passion and commitment to a new way of thinking about GSSA expertise through its “Augmented GSSA” strategy, taking into account its 4 pillars: Commercial, Abilities, Technology and Sustainability for growth and strong value system for the Company. With their experience and progressive thinking, they aim to grow in Air Cargo space. To strengthen their association, they made a strategic investment in the Joint Venture named Teleport Commerce IN Private Limited and acquired 33% of the stake in the Joint Venture.

iii. Their commitment towards work has helped them attain immense confidence and trust of their clients. They provide services to their clients across countries namely India, China, Middle East, Sri Lanka, Singapore and Malaysia

iv. Currently, offline airlines (airlines not having offices and relations like GSSA or through any other mode in India for its overseas regional operations) see outsourcing of cargo as a sensible option in terms of cost saving and incremental revenue.

They have two business verticals:

v. Cargo Carrier Service: They are representing various airlines such as Air Europa Express (Latin America), Copa Airlines (Latin America), MIAT Mongolian (Mongolia), Bringer Airlines (Latin America), Paragon Hong Kong Express (Asia), Fits Aviation Pvt Ltd (Latin America/ Africa), Azerbaijan (Azerbaijan), Indigo (Dubai / Middle East), Mercury Air Cargo (Latin America). Transfer and shipment of goods by arrangement with the represented / contracted airlines for the transportation of cargo through air.

vi. Passenger Carrier Service: They work with Airlines and provide them with the support for the transportation of passengers through Airways from one country to another. They create a smooth cross cultural experience for passengers as well as airlines. As a pilot project they have started working with Azerbaijan Airlines. Before we started working with Azerbaijan there were no direct flights to Azerbaijan from India.

Competitive Strengths

i. Scalable Business Model
ii. Long standing Customer Relationship
iii. Experienced Promoter


Objects of the Zeal Global Services Limited IPO:

The company intends to utilize the proceeds of the Issue to meet the following objects: i. Working capital requirement ii. Investments in subsidiaries for business expansion iii. Part repayment of debt iv. General corporate purposes v. To meet issue expenses

Zeal Global Services Limited IPO Details:

Open Date: Jul 28 2023
Close Date: Aug 01 2023
Total Shares: 3,540,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Issue
Issue Size: 36.46 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 103 Per Equity Share
Listing At: NSE Emerge
Listing Date: Aug 09 2023

Promoters And Management:

(i) Mr. Nipun Anand, aged 30 years, was appointed as the Promoter and Director w.e.f. Februay 13, 2014, thereafter designated as Chairman and Whole Time Director w.e.f March 1, 2023 . He holds a Bachelor degree in Arts and Business Administration from Delhi University and University of Bradford respectively. He is having an experience of 9 years in the like Logistics-Airlines (Air Cargo), Construction, Real Estate Planning & Development. He is associated with the Company since February 13, 2014 as a Promoter and Chairman. He also founded Pradhaan Air. He is entrusted with the responsibilities to build out a robust sales and business development strategy for the Company. (ii) Mr. Vishal Sharma, aged 51 years, was appointed as the as the Promoter and Director w.e.f. Februay 13, 2014, thereafter designated as Managing Director and Whole Time Director w.e.f March 1, 2023. He has completed his Bachelor degree in Commerce from Chaudhary Charan Singh University. Before joining the Company, he worked with Dabur Limited, Heinz, Omni Mark, Group Concorde, British Airways, Global Aviation and having overall experience of more than 25 years. He is a valuable asset of the Company, under his guidance Company will achieve its goals in future. (iii) Ms. Urmil Anand, aged 67 years, was appointed as the Executive Director w.e.f. Januray 11, 2023. She have passed Higher Secondary Examination from Government Girls Higher Secondary School, Mehrauli, New Delhi. Ms. Urmil Anand is a result driven human resource and administration professional having experience of more than ten years in Commercial and Residential Construction industry, where she was responsible for hiring and training staff and delegating tasks to administrative staff and monitoring day to day operations of the Company. She has the aptitude for building key relationships to enhance Company growth and objectives while maintaining a thorough understanding of leveraging existing and emerging technologies to drive business goals.

Financials of Zeal Global Services Limited IPO:


Pariculares ( In Crore )





Revenue from Operations 76 61 121 114
Other Income 0.2 0.4 0.2 0.1
Total Revenue 77 61 121 114
Cost of Services rendered 68 52 105 90
Employee Benefits Expense 3 3 2 3
Other Expenses 3 4 7 5
EBITDA 2 3 7 15
Depreciation & Amortisation 0.19 0.18 0.25 0.75
Finance Cost 0.04 0.21 0.08 0.75
EBIT 2 3 7 14
OPM (%) 2.66% 4.41% 6.15% 13.10%
PBT 2 2 7 13
Tax 0.5 0.6 2 4
PAT 1 2 5 10
NPM (%) 1.74% 2.78% 4.32% 8.70%
No.of Shares 1.33 1.33 1.33 1.33
EPS 1.00 1.27 3.93 7.45
* Data of 10MFY23 Analysised into 12MFY23.

Comparison With Peers:

Note: - There is no listed peer companies in India.

Recommendation on Zeal Global Services Limited IPO:

Review and Recommendation of Zeal Global Services SME IPO by IZ team is 4/10

1. Company Background:

The company, originally incorporated as 'Zeal Global Services Private Limited', is now a Public Limited Company. It operates in the Air Cargo Industry and is headquartered in Delhi, with a presence in major locations like Delhi and Mumbai. India's Air Freight Market is estimated to be USD 13.08 Bn in 2023 and is expected to reach USD 17.22 Bn by 2028, growing at a CAGR of 5.65%. The growth is not very much in the industry as a whole.

2. Logistics Solutions

The company provides logistics solutions in the Air Cargo Industry, acting as a General Sales and Service Agent (GSSA) and sales partner for airlines in the region.

3. VClient-Centric Approach

The company focuses on understanding the specific requirements of its clients individually, spending considerable time to tailor economical solutions for their freighting needs. It serves various industries, including fashion, pharmaceuticals, automotive, and industrials.

4. Experience and Expertise

The promoters of the company have a combined experience of around 18 years in the air cargo industry. They are committed to a progressive approach, implementing an "Augmented GSSA" strategy based on four pillars: Commercial, Abilities, Technology, and Sustainability.

5. Joint Venture Investment

The company has made a strategic investment in a Joint Venture named Teleport Commerce IN Private Limited, acquiring a 33% stake. This investment aims to strengthen its position and expand its capabilities

6. International Operations

The company's logistics operations are not limited to India; it has a network of service partners and vendors worldwide, allowing it to service client requirements across India and abroad. It operates in countries like India, China, Middle East, Sri Lanka, Singapore, and Malaysia.

7. Financial Performance and Valuation

a. The EBITDA margins in the business in the last 4 years ie. Fy19 to Fy22 was between 3-6%. However, in the first 10MFY23, the EBITDA margins Zooms to 13% which looks unreal. b. Employee Benefit Expenses have gone down from 3.08 Cr in Fy20 to 2.47 Cr in Fy22. A negative sign specially when company is showing sign of growth. c. There is no growth from Fy22 to Fy23 in the top-line. d. Valuation looks reasonable but business is not that promising.

Lead Manager of Zeal Global Services Limited IPO:

  1. Expert Global Consultants Private Limited

Registrar of Zeal Global Services Limited IPO:

  1. Skyline Financial Services Private Ltd

Company Address:

Zeal Global Services Limited A - 261/262, Third Floor, Street No. 6, Mahipalpur Extension, New Delhi - 110037 Phone: +91 11 4144 4063 Email: cs@zeal-global.com Website: https://www.zeal-global.com/

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