Dhillon Freight Carrier IPO

About Dhillon Freight Carrier IPO

The offer consists of a fresh issue component. The fresh issue will include 14,00,000 equity shares aggregating to ₹10.08 crores. The total number of shares and aggregate amount are yet to be finalised.

The opening date is TBA. The closing date is TBA. The listing date is TBA. The allotment date is TBA. The credit of shares to the demat account will take place on TBA. The initiation of refunds will take place on TBA.

Dhillon Freight Carrier Limited specialises in delivering end-to-end logistics support, with road transportation at the core of their operations. As a goods transport agency, they offer services such as Less-than-Truckload (LTL) shipping, contract-based logistics management, and vehicle rental or leasing solutions. Their offerings are tailored to meet the needs of both business clients and individual consumers. Their operational model is centred around flexibility and optimisation, ensuring that they provide high-quality service to their clients while maintaining profitability and resource efficiency throughout their network. To enhance their operational capacity and meet fluctuating customer demand, they supplement their owned fleet with outsourced vehicles. Their strong relationships with small fleet operators and single-owner drivers provide access to vehicles as per their requirements, ensuring timely and reliable transportation services nationwide.

Objectives of Dhillon Freight Carrier IPO

• Purchase of goods transportation vehicles and their fabrication.
• General corporate purposes.
• To meet the issue expenses.

Industry Outlook

The logistics industry plays a vital role in the dynamic economic landscape of India by enabling the efficient movement of goods and services throughout the country's large territory. As India strives to realise its ambitious economic goals, including achieving a GDP of US$5,50,000 crores by 2027, the transformation of its logistics sector emerges as a pressing imperative.

The Indian logistics sector is one of the largest in the world and presents a huge addressable opportunity. The sector is critical for the country's economic growth as it connects various elements of the economy and consists of transportation, warehousing and other supply chain solutions ranging from suppliers to end customers. The Department of Commerce set up a logistics division in July 2017 to oversee the integrated development of the sector. Led by the Special Secretary to the Government of India, the division aims to enhance the sector by devising action plans for policy reforms and process enhancements, addressing challenges, and embracing technology.

The industry is characterised by dynamism, undergoing rapid evolution to meet escalating demands. Technological advancements, infrastructure enhancements and governmental initiatives, including GST implementation and the National Logistics Policy (NLP), are precipitating substantial transformations within the sector. Digitalisation, augmented connectivity, and the adoption of cutting-edge innovations such as Radio Frequency Identification (RFID) and Global Positioning System (GPS) are bolstering operational efficiency while mitigating costs. Furthermore, the surge in e-commerce activities and international trade is propelling demand for streamlined logistics solutions. Despite persistent challenges such as infrastructural deficits and regulatory intricacies, the industry stands poised for significant expansion, presenting domestic and international entities with opportunities to flourish within India's burgeoning market.

Company Information

Founded in 2014, Dhillon Freight Carrier Limited is engaged in providing logistics solutions to businesses, particularly road transportation. They are a goods transport agency providing Parcel/Less than Truck-Load (LTL), Contract Logistics and Fleet Rental/Fleet Leasing services to different industries. They serve both B2B and B2C customers.

They are an ISO 9001:2015 certified service provider who handle client requirements in a professional manner to ensure the highest degree of customer satisfaction. Since inception, they have consistently been providing solutions powered by their own fleet vehicles. Their present in-house fleet strength is about 62 vehicles. The company operates mainly across West Bengal, Bihar, Delhi and Uttar Pradesh, providing reliable and efficient logistics solutions to businesses nationwide. They operate through an established network of 22 booking offices, pickup facilities, warehouses, delivery offices and agency networks etc.

The company is based in Kolkata and has its operations spread across India. They have established their booking offices, pickup facilities, warehouses, delivery offices and agency networks etc. in about 5 states of India.

Strengths of Dhillon Freight Carrier IPO

• Diversified service range.

• Adopt sustainable practices through eco-friendly vehicles and promote cleaner logistics.
  

• Diverse customer base, including apparel, engineering goods, electrical hardware, footwear, paints, chemicals, agriculture, and consumer electronics.
  

• Their goods transportation fleet includes 62 owned vehicles, and they further have arrangements for outsourced trucks (i.e., trucks taken on hire basis), thereby providing access to a larger fleet size.
  

• A young and modern fleet, specifically focusing on electric three-wheelers, positions them at the forefront of sustainable urban logistics.
  

Risks of Dhillon Freight Carrier IPO

• Dependence on third-party service providers for a significant portion of their transportation fleet.
  
• Geographic concentration of logistics operations.
  
• Dependence on the road network.
  
• Dependency on the prevailing economic conditions in India.
  
• Interest rate fluctuations
  

Considering the nature and size of business of the Company, the peers may not be exactly comparable. Hence a strict comparison is not possible. However, the above companies have been included for broader comparison.

*Source for Peer Companies: Annual Reports (figures as on March 31, 2024)

Anchor Investor Bidding Date: TBA

Registrar: KFin Technologies Limited

Book Running Lead Managers: Finshore Management Services Limited

Dhillon Freight Carrier Business Model

The company earns its revenue through the following: Providing Parcel/Less than Truck-Load (LTL), Contract Logistics and Fleet Rental/Fleet Leasing services to different industries.

Dhillon Freight Carrier Company Growth Trajectory

In Fiscal 2024, Fiscal 2023 and Fiscal 2022, they generated total income of ₹24.73 crores, ₹29.91 crores and ₹31.73 crores, respectively; EBITDA (operating profit) of ₹2.36 crores, ₹3.31 crores, ₹1.74 crores and ₹0.75 crore respectively; and net profit after tax of ₹1.01 crores, ₹1.09 crores, ₹0.36 crore and ₹0.26 crores respectively.

The revenue from operations has decreased from ₹31.42 crores in FY 2021-22 to ₹19.60 crores for the nine-month period ended 31 December 2024, i.e. revenue from operations decreased by ₹11.82 crores (37.61% for the said period), while PAT increased from ₹0.26 crore (0.82% of total revenue) to ₹1.01 crores (5.05% of total revenue) as per restated financial statements for the said period. Primarily, this increase in profits despite the decline in revenue from operations can be attributed to strategic cost reductions, less reliance on third-party trucks, and capital investment in their fleet.

How to check allotment status of Dhillon Freight Carrier IPO?

Visit the Registrar's Website

To check the IPO allotment status for Dhillon Freight Carrier Limited IPO, visit the official website of KFin Technologies Limited, the registrar for this IPO. On their IPO allotment status page, enter your Permanent Account Number (PAN), application number, or Demat account ID. Then, click the ‘Submit’ button to view your allotment status. Ensure you have the necessary details ready for a quick and accurate check.

Check on the Bombay Stock Exchange Website

The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps

• Select 'Equity' from the dropdown menu
• Choose 'Dhillon Freight Carrier Limited' in the next dropdown
• Enter your application number
• Enter your PAN
• Click 'Search' Your Dhillon Freight Carrier Limited IPO allotment status will be displayed.

Verify on the National Stock Exchange Website

The National Stock Exchange (NSE) has an IPO Bid Verification module. Use this to check Dhillon Freight Carrier Limited IPO allotment status.

Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:

• Application number
• PAN Then click 'Submit'. Your Dhillon Freight Carrier Limited IPO bid and allotment details will be displayed.

How to apply for Dhillon Freight Carrier 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.