IPO Details
Issue Date
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Price Range
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IPO Size
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Schedule of CJ Darcl Logistics IPO
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
About CJ Darcl Logistics Ltd IPO
A 100% book-built offer, the IPO of CJ Darcl Logistics Ltd consists of a fresh issue and an offer for sale. While the fresh issue of equity shares is worth ₹340 crore, the offer for sale comprises up to 5,431,071 equity shares. The allotment of shares will take place on TBA, the shares will be credited to the account on TBA and the refunds will be initiated on TBA.
Objectives of CJ Darcl Logistics Ltd IPO
The company plans to utilise the proceeds received from the IPO for:
- Repayment/ prepayment, in full or in part, of certain outstanding borrowings availed by the company
- Funding capital expenditure requirements of the company towards purchase of EVs
- General corporate purposes
CJ Darcl Logistics Ltd IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | ₹340 crore |
Offer for Sale | Up to 5,431,071 equity shares |
EPS (in ₹) for FY 23 | 29.87 |
CJ Darcl Logistics Ltd Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net offer |
Non-institutional Bidders | Not less than 15% of the net offer |
Retail Individual Bidders | Not less than 35% of the net offer |
Industry Outlook
In logistics, the market size of key sectors – road transport (FTL, LTL and express), rail transport, domestic express logistics, air cargo, multimodal logistics (Rail container logistics and Road container logistics), coastal transport, industrial warehousing, 3PL and freight forwarding – is estimated to be about ₹ ~9 trillion in fiscal 2023. By fiscal 2028, the market will reach ₹ ~13.4 trillion, growing with a 8-9% CAGR.
Company Information
CJ Darcl Logistics Ltd is a diversified logistics company in India, with market leadership in full truck load (FTL) vertical in terms of revenue for Fiscal 2023. The company has pan-India operations covering over 5,249 locations through its network of 187 branch offices as of March 31, 2023. With over 36 years of its operational experience since inception, the company provides differentiated logistics solutions.
Strengths of CJ Darcl Logistics Ltd
Scaled and Integrated Multimodal Logistics Operations with Leadership in FTL Transportation
With over 36 years of operational experience since inception, CJ Darcl Logistics Ltd has developed internal intelligence related to trade flows and volumes across routes, seasonality impact on volumes and freight across pan-India routes, pan-India customer base to enable two-way business with minimum wastage of empty runs for business partners.
Asset-right Business Models Resulting into Higher Efficiencies
The company relies on an asset-right business model wherein the assets necessary for quality services to its customers, such as commercial vehicles, multi axles and containers, are either owned or provided by a large network of its business partners. As of March 31, 2023, the company had a network of 820,333 partnered fleet in its portfolio, through a vendor base of 496,981 business partners built on long standing relationships.
Customised and Technology-driven Logistics Solutions Increasing Efficiency and Quality of Services
The company has placed significant emphasis on technology, which has empowered it to provide cost-efficient and customised logistics solutions to its customers. Their advanced technology systems have also granted them the ability to control and oversee operations, conduct real-time tracking of vehicles, offer end-to-end visibility of our operations, and promptly implement corrective measures when necessary.
Risks of CJ Darcl Logistics Ltd
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The company derives a significant portion of its revenue from operations from its top 20 customers, with its top five customers contributing 38.47% revenue from operations in Fiscal 2023. Loss of one or more of these customers or a reduction in the amount of business it obtains from them could have an adverse effect on its business, results of operations, financial condition and cash flows.
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The company is dependent on the performance of industries in which its customers operate, particularly metals and minerals. Fluctuations in the performance of such industries may result in a loss of such customers, a decrease in the volume of work it undertakes or the price at which it offers its services.
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The company may not be able to pass on any increase in costs levied by its third-party service providers to its customers. Conversely, it may not be able to pass on any decline in prices it charges its customers to its third-party service providers. It’s also exposed to risks related to an escalation in fuel prices.
All Financial Information about CJ Darcl Logistics
Comparison with peers
| Parameter for FY 23 | CJ Darcl Logistics Ltd | TCI Express Ltd | Mahindra Logistics Ltd | Container Corporation of India Ltd | Transport Corporation of India Ltd |
|---|---|---|---|---|---|
Revenue from Operations (in ₹ crore) | 4215.826 | 1241.010 | 5128.290 | 8169.120 | 3782.573 |
P/E | NA | 40.48 | 106.50 | 38.16 | 19.28 |
Return on Net Worth (in %) | 11.74 | 23.35 | 4.68 | 10.46 | 18.65 |
EPS in ₹ (Basic) | 29.87 | 36.24 | 3.65 | 19.26 | 40.96 |
IPO Registrar and Book Running Lead Managers
Link Intime India Private Ltd is the registrar of CJ Darcl Logistics Ltd IPO. The book running lead managers of the IPO are:
- ICICI Securities Ltd
- Axis Capital Ltd
- Mirae Asset Capital Markets (India) Private Ltd
Business Model
CJ Darcl Logistics Ltd provides differentiated logistics solutions with multimodal capabilities across verticals including:
- Road/FTL transportation
- Rail/multimodal transportation
- Warehousing and distribution (W&D) and integrated logistics solutions including project logistics, third party logistics (3PL) and freight forwarding
- Other services including air cargo transportation and shipping/coastal transportation
Company Growth Trajectory
During Fiscals 2023, 2022 and 2021, the company earned ₹4,215.826 crore, ₹36,81.381 crore and ₹28,87.569 crore as revenue from operations, signalling a growth of ~46%. The company earned ₹31,77.057 crores, ₹ 26,54.270 crores and ₹21,18.579 crores accounting for 75.36%, 72.10% and 73.37% of the revenue from operations, respectively, from contracts with duration of at least one year.
Market Position
CJ Darcl Logistics Ltd has over 36 years of operational experience. Some of its customers include TATA Steel Limited, Reliance Industries Limited, Arcelor Mittal Nippon Steel India Limited, Jindal Stainless Limited, ESL Steel Limited, Century Plyboards (I) Limited, etc. It has PAN India operations through a network of 187 branch offices as of March 31, 2023.
CJ Darcl Logistics Ltd Profit and Loss
| Parameter | FY 23 | FY 22 | FY 21 |
|---|---|---|---|
Total Income (in ₹ crore) | 4239.396 | 3696.329 | 2907.851 |
Profit Before Tax (in ₹ crore) | 86.761 | 80.016 | 42.423 |
Profit After Tax(in ₹ crore) | 67.703 | 61.368 | 31.747 |
EBITDA (in ₹ crore) | 184.804 | 154.577 | 124.369 |
EPS in ₹ | 29.87 | 27.08 | 14.01 |
CJ Darcl Logistics Ltd Cash Flow Statement
| Parameter | FY 23 | FY 22 | FY 21 |
|---|---|---|---|
Profit Before Tax (in ₹ crore) | 86.761 | 80.016 | 42.423 |
Net Cashflow Generated/ (Used) in Operating Activities (in ₹ crore) | 126.706 | (28.278) | 71.326 |
Net Cash Used in Investing Activities (in ₹ crore) | (152.236) | (56.830) | (3.923) |
Net Cashflow Generated/ (Used) in Financing Activities (in ₹ crore | 21.296 | 77.686 | (55.922) |
Cash and Cash Equivalents at End of the Year (in ₹ crore) | 8.145 | 12.379 | 19.801 |
How to Check Allotment Status of CJ Darcl Logistics Ltd IPO?
You can check the allotment status through the BSE website or the registrar’s website. To check the status on the BSE website:
- Visit the BSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt
- Select the Issue Name from the drop-down.
- Enter your application number or PAN number
- Check the box that says “I’m not a Robot” and click on “Search” to know the allotment status
To find out the status from the registrar's website:
- Visit the website of Link Intime Private Ltd
- Choose ‘Public Issues’ from Investor Services dropdown
- Choose the name of the company from ‘Select Company’ dropdown
- Enter any of these - PAN Number, Application Number, DP/Client ID, Account Number / IFSC
- Click on Submit to check the status
How To Apply for CJ DARCL Logistics Ltd IPO?
Here are the steps to apply for CJ DARCL Logistics Ltd IPO:
Step 1: Log in to your Kotak Securities Demat account Log in to your Demat account to access IPO investments. Next, select the current IPO section.
Step 2: Specify IPO details Enter the number of lots and the price you wish to apply for.
Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
Step 4: Mandate Notification Your UPI app will receive a mandate notification to block funds.
Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
CJ Darcl Logistics IPO FAQs
What is the CJ Darcl Logistics Ltd IPO?
The CJ Darcl Logistics Ltd IPO is a fresh issue and an offer for sale. While equity shares aggregate up to ₹ 340 crore in the fresh issue, the offer for sale comprises up to 5,431,071 equity shares.
When is the bidding date of CJ Darcl Logistics Ltd IPO?
The bidding dates for the IPO are yet to be announced.
