Tejas Cargo India Ltd IPO

The IPO opens on 14 Feb 2025 & closes on 18 Feb 2025.

Tejas Cargo India Limited was incorporated as a Private Limited Company in the name and style of Tejas Cargo India Private Limited' on March 26, 2021 with the Registrar of Companies. Subsequently, Company was converted into a Public Limited Company and the name was changed to Tejas Cargo India Limited' vide certified Incorporated dated September 05, 2024 issued by the Registrar of Companies, Central Processing Centre. Promoter, Manish Bindal commenced his journey with a sole proprietorship firm titled Trans Cargo India' in year 2009 to cater logistic needs of various industries. Chander Bindal, who assisted Manish Bindal in development of logistics network under the brand name of Trans Cargo India'. Over the years, bolstered by experience, client trust and relationship-building, Manish Bindal and Chander Bindal started operations under the Company in 2021 to institutionalise the logistic operations. Tejas Cargo India, a logistics company based in Faridabad, Haryana, has been providing long haul supply chain transportation services by road across India. The Company offer express supply chain transportation services by road under full truck load, to a diverse companies who are, inter alia, engaged into logistics, steel and cement, e-commerce, industrial & chemicals, FMCG and white goods sectors. It offer technology enabled logistics services to clients in optimizing business operations and minimize contingencies. The services include shipment planning, route optimisation, fleet selection, documentation, tracking, communication and coordination and performance evaluation. Third-Party Logistics (3PL) market involves outsourcing logistics and supply chain management tasks-such as transportation, warehousing, inventory management, and order fulfilment to specialized external firms. The Company specialize in supply chain transportation services by road under FTL to achieve network optimization and efficient freight management. It also provide vehicles in the open market through strategic network to optimise fleet utilization. Company increased the fleet size from 104 to 341. It entered the new fleet division of trailers in 2022. In 2023, it acquired Subsidiary Company i.e. Tejas Carrriers Solutions Private Limited, increased the fleet size from 341 to 713. The Company came up with the IPO by raising Rs 105.84 Cr and by issuing 63,00,000 equity shares of face value of Rs 10 through fresh issue in February, 2025. The Company began production to steel and cement sectors in FY2024.

Tejas Cargo India Ltd IPO will close on 18 Feb 2025.

<ul><li>Heavy Asset Ownership Model.</li><li>Leveraging modern technology to operate and monitor our fleet.</li><li>In-House Maintenance and Direct Procurement.</li><li>Diversified client base and revenue sources.</li><li>Track record of growth and robust financial position.</li><li>Experienced and motivated management team.</li></ul>

<table class="table"> <thead> <tr> <th>S.No</th> <th>Promoters Name</th> <th>Pre Issue Shares</th> <th>Pre Issue Percentage</th> <th>Post Issue Shares</th> <th>Post Issue Percentage</th> </tr> </thead> <tbody> <tr> <td>1</td> <td>Chander Bindal</td> <td>8796134</td> <td>50</td> <td>8796134</td> <td>36.81</td> </tr> <tr> <td>2</td> <td>Manish Bindal</td> <td>8796206</td> <td>50</td> <td>8796206</td> <td>36.82</td> </tr> <tr> <td>3</td> <td>Harsh Hupta</td> <td>100</td> <td>---</td> <td>100</td> <td>---</td> </tr> <tr> <td>4</td> <td>Kirtim Bindal</td> <td>100</td> <td>---</td> <td>100</td> <td>---</td> </tr> <tr> <td>5</td> <td>Nirmal Bindal</td> <td>100</td> <td>---</td> <td>100</td> <td>---</td> </tr> <tr> <td>6</td> <td>Meenu Bindal</td> <td>100</td> <td>---</td> <td>100</td> <td>---</td> </tr> <tr> <td>7</td> <td>Pawan Bindal</td> <td>100</td> <td>---</td> <td>100</td> <td>---</td> </tr> </tbody> </table>

<ul><li>There are outstanding legal proceedings against the Company, Promoter, and one of its Director. Any adverse decision in such proceedings may render it/them liable to liabilities/penalties and may adversely affect its business, results of operations and financial condition. </li><li>Its business is dependent on the network of roads and the company ability to utilize its vehicles in an uninterrupted manner. Any disruptions which affect its ability to utilize the company transportation network in an uninterrupted manner could result in delays, additional costs or a loss of reputation or profitability.</li><li>The Company operates without any truck drivers on its payroll and outsources drivers on an adhoc basis. The company inability to source skilled and experienced drivers may adversely impact its business, results of operations and financial results.</li><li>The company depends significantly on its customers from different industries and are highly dependent on the performance of their industry. A loss of, or a significant decrease in their business could adversely affect the company business and profitability.</li><li>There have been instances of discrepancies/ errors/delayed filings and statutory non compliances in the past. The company may be subject to legal proceedings or regulatory actions by statutory authorities and its business, financial condition and reputation may be adversely affected. </li><li>Brand recognition is important to the success of its business, and the company inability to build and maintain its brand names will harm the company business, financial condition and results of operation.</li><li>The company requires a number of approvals, licenses, registrations and permits in the ordinary course of its business. Some of the approvals are required to be transferred in the name of Tejas Cargo India Limited from Tejas Cargo India Private Limited pursuant to name change of the Company and any failures or delay in obtaining the same in a timely manner may adversely affect its operations.</li><li>The Company is yet to apply for Professional Tax Registration for some branch offices. Failures to obtain such registrations may adversely impact its business, financial conditions, results of operations, and cash flows.</li><li>As of September 30, 2024, its debt-to-equity ratio is significantly high at 3.27. We have availed a substantial debt amounting to Rs. 20,498.63 lakhs, primarily for investments in fixed assets such as commercial vehicles. Any inability to service this debt or adhere to the covenants stipulated in its financing agreements could materially and adversely impact the company business operations, financial condition, and overall performance". </li><li>The company business is dependent on technology which is outsourced by the Company and any disruptions of or failures to update such technology or automation could have an adverse effect on its results and operations.</li><li>The company does not verify the contents of the goods transported by it thereby exposing the company to the risks associated with the transportation of goods in violation of applicable regulations. </li><li>Its premises are not owned by the company and its have only lease rights over such premises. In the event the company lose such rights or are required to negotiate it, its cash flows, business, financial conditions and results of operations could be adversely affected.</li><li>The company may faces claims relating to loss or damage to cargo, personal injury claims or other operating risks that are not adequately insured.</li><li>The Company has availed unsecured loans, which may be recalled on demand.</li><li>The company operates in a highly fragmented and competitive industry and increased competition may lead to a reduction in its revenues, reduced profit margins or a loss of market share.</li><li>The company success largely depends upon the knowledge and experience of its Promoters, Directors, Key Managerial Personnel and Senior Management Personnel as well as the company ability to attract and retain personnel with technical expertise. Its inability to retain the company Promoters, Directors, Key Managerial Personnel and Senior Management or its ability to attract and retain other personnel with technical expertise could adversely affect the company business, results of operations and financial condition.</li><li>An increasing age of transportation vehicles and increasing prices of new vehicles may adversely affect its business and results of operations.</li><li>The Company is subject to risks associated with volatile fuel costs. If fuel prices rise sharply, this could impact its operational costs and profitability, as the company may faces higher expenses for sourcing fuel to meet customer demand.</li><li>The company failures to perform in accordance with the standards prescribed in its customer contracts could result in loss of business or payment of compensation or damages as per terms of contract. </li><li>The Company requires significant amounts of working capital for continued growth. Its inability to meet the company working capital requirements may have an adverse effect on its results of operations.</li><li>The company may faces the risk of delayed receivables which in turn may lead to increase in Working Capital Requirements.</li><li>The logo used by the Company is not registered under the Trade Marks Act, 1999. Failures to protect its intellectual property rights may adversely affect its competitive business position, financial condition and profitability. </li><li>The company Promoters and Promoter Group have extended personal guarantees with respect to loan facilities availed by the Company and have provided their property as collateral security for loan facilities availed by the Company. Revocation of any or all of these personal guarantees or withdrawal of such property may adversely affect its business operations and financial condition. </li><li>The company has had negative cash flows from operating activities in the past and may, in the future, experience similar negative cash flows.</li><li>The Company has entered into related party transactions in the past and may continue to enter into related party transactions in the future, which may potentially involve conflicts of interest with the equity shareholders.</li><li>The company has historically procured most of its vehicles and spare parts from OEMs in the goods transportation business. As a result of this supplier concentration, the company is exposed to risk of dependence on few suppliers. Any delay or nonconformity to quality requirements by its OEMs can impact the company expansion plans in the goods transportation business and its ability to meet customer requirements. </li><li>Any non-availing of credit ratings could result in an increase in the interest rates the company pay on any new borrowings and could decrease its ability to borrow as much money as the company requires to finance its business". </li><li>There have been instances of non-payment and delay in in payment of statutory dues in the past under the statutory provisions of the Central Goods and Services Tax Act, 2017, Income Tax Act, 1961, the Employees Provident Funds and Miscellaneous Provisions Act, 1952 and the Employees State Insurance Act, 1948. Such non-compliance and delayed compliance may attract penalties against the Company which could impact the financial position of it to that extent. </li><li>Significant security breaches in the company computer systems and network infrastructure and fraud could adversely impact its business.</li><li>The company has incurred indebtedness, and an inability to comply with repayment and other covenants in its financing agreements could adversely affect the company business and financial condition.</li><li>Its business strategies and expansion plans may be subject to various unfamiliar risks and may not be successful.</li><li>The nature of its business exposes the company to liability, claims and contract disputes. Any liability in excess of its reserves or indemnities could result in additional costs, which could adversely impact the company business, results of operations and financial results. </li><li>The company ability to pay dividends will depends upon future earnings, financial condition, cash flows, working capital requirements, capital expenditures and other factors.</li><li>The company actual results could differ from the estimates and projections used to prepare its financial statements.</li><li>After the completion of the Issue, the company Promoters will continue to collectively hold substantial shareholding in the Company. </li><li>Common pursuits exists between the Company and its Subsidiary Company.</li><li>The average cost of acquisition of Equity Shares by its Promoters could be lower than the Issue price.</li><li>Any delays in the schedule of implementation of its proposed objects could have an adverse impact on the company business, financial condition and results of operations. </li><li>Any variation in the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval. </li><li>Its funding requirements and the proposed deployment of Net Proceeds have not been appraised by any bank or financial institution or any other independent agency and its management will have broad discretion over the use of the Net Proceeds.</li><li>The company inability to successfully implement some or all its business strategies in a timely manner or at all could have an adverse effect on the company business.</li><li>In the event there is any delay in the completion of the Issue, there would be a corresponding delay in the completion of the objects / schedule of implementation of this Issue which would in turn affect its revenues and results of operations.</li><li>The company Directors may have interests other than reimbursement of expenses incurred and normal remuneration or benefits in thd Company.</li><li>If the company is unable to establish and maintain an effective internal controls and compliance system, its business and reputation could be adversely affected.</li><li>The company future funds requirements, in the form of fresh issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the shareholders depending upon the terms on which they are eventually raised.</li><li>One of its KMP is associated with the Company for less than one year.</li><li>The company does not have documentary evidence for the educational qualification of one of Directors and Senior Management Personnels.</li><li>Certain sections of this Red Herring Prospectus contain information from the CareEdge Report which the company commissioned and purchased and any reliance on such information for making an investment decision in the Issue is subject to inherent risks.</li><li>The company has in this Red Herring Prospectus included certain Non-GAAP Measures that may vary from any standard methodology that is applicable across the industries in which the company operates and may not be comparable with financial information of similar nomenclature computed and presented by other companies.</li></ul>

The Issue type of Tejas Cargo India Ltd is Book Building - SME.

The minimum application for shares of Tejas Cargo India Ltd is 800.

The total shares issue of Tejas Cargo India Ltd is 6300000.

Initial public offer of 63,00,000^ equity shares of face value of Rs. 10 each (the "Equity Shares") of Tejas Cargo India Limited ("The Company" or "The Issuer") at an issue price of Rs. 168 per equity share (including share premium of Rs. 158 per equity share) for cash, aggregating to Rs. 105.84^ crores ("The Issue") out of which 63,200^ equity shares of face value of Rs. 10 each, at an issue price of Rs. 168 per equity share for cash, aggregating to Rs. 1.06^ crores were reserved for subscription by eligible employees of the company (the "Employees Reservation Portion") and 3,15,200^ equity shares of face value of Rs. 10 each, at an issue price of Rs. 168 per equity share for cash, aggregating to Rs. 5.30^ crores were reserved for subscription by the market maker to the issue (the "Market Maker Reservation Portion"). The issue less employee reservation portion and market maker reservation portion i.e. issue of 59,21,600^ equity shares of face value of Rs. 10 each, at an issue price of Rs. 168 per equity share for cash, aggregating to Rs. 99.48^ crores is hereinafter referred to as the "Net Issue". The issue and net issue constitute 26.37% and 25.18% respectively of the post-issue paid-up equity share capital of the company. The offer price is 16.8 times the face value of the equity shares. ^Subject to finalization of basis of allotment