About the Company:
Accuracy Shipping Limited (Incorporated in 2008) is a third party logistics solutions provider.As a multimodal transport operator, they offer end-to-end freight services for export and import cargo utilizing multiple modes of transport such as sea, road, rail and air.
Company offers customized and end-to-end logistics solutions and services including transportation and distribution, freight forwarding, clearing and forwarding service, custom house clearance, warehousing and value added services to the clients.
They are also engaged in handling of project cargo, which is a specialized activity requiring detailed planning and technical expertise.
At present Company is serving diverse type of industries consisting of marbles & granite industry, paper industry, fabric industry, agricultural products, etc.
Company operate their business through a PAN India network consisting of a registered office at Gandhidham, 5 branch offices and over 1,300 clients as at January 31, 2018.
In addition to using hired fleets, they also have a fleet of more than 150 vehicles to meet their inland transportation requirements.They also have a network of various business partners providing them vehicles, warehouses and other assets and services for their business.
At present Company is offering their services through their business partners in over more than 35 countries.
Awards Received by the Company:
Company has been awarded Indian Sub Continent Best Partner Award- 2017 by WCA (World Cargo Alliance).
Company is a Member of World Cargo Alliance Network, Federation of Freight Forwarders Association in India, Association of Multi model transport operator in India, The Gandhidham Chamber of Commerce & Industry and Life Member of Kandla Mundra Container Transport Welfare Association.
Services Offered by the Company.
Freight & Forwarding Business:
Company’s freight & forwarding operations along with customs clearance services contributed to 74.25% of their total revenue from operations for the year ended March 31, 2017 and 68.48% of their total revenue from operations for the period ended December 31, 2017.
Transportation Business:
For the transportation business they have a fleet of more than 150 heavy vehicles including trailers, designed exclusively for carrying containers and tankers and ODC cargo.
Company’s transportation operations contributed to 19.02% of their total revenue from operations for the year ended March 31, 2017 and 24.60% of their total revenue from operations for the period ended December 31, 2017.
Customs Clearance Business:
Company is undertaking custom clearance activities and has its presence in Chennai, Mumbai and Gujarat.
Company has more than 30 partners and associates in the Middle East, European Union, Malaysia, Singapore, Taiwan which assist the Company to clear the consignments from the destination ports and deliver it to the customer’s location.
Warehousing Business:
Company’s warehousing & distribution services include Bonded Warehousing (Customs & Excise Bonded), General Warehousing, Temperature controlled warehousing, export stuffing warehousing, export vendor consolidation, etc.
At present, they offer these services only through third party warehouses and are using services of around 12 warehouses.
Company’s warehouse operations contributed to 6.75% of their total revenue from operations for the year ended March 31, 2017 and 6.56% of their total revenue from operations for the period ended December 31, 2017.
Competition in the Business:
The industry is organized and fragmented with many small and medium sized companies. Logistics being a global industry, they face competition from various domestic and international players.
Among listed companies, they face competition from Tiger Logistics India Limited, AllCargo Logistics Limited, Sical Logistics Limited and Total Transport Systems Limited.
Management Team:
- Mr. Vinay Tripathi (Designation: Chairman and Managing Director)
- Ms. Rama Tripathi (Designation: Whole time Director)
- Mr. Hemant Shah (Designation: Director)
Promoters Average Acquisition Cost:
| Name of the Promoter | No. of Shares held | Average Acquisition Cost (in Rs.) |
|---|---|---|
| Vinay Tripathi | 55,27,000 | 10 |
| Rama Tripathi | 37,92,000 | 6.41 |
Positives for the Company:
Large fleet of Owned Vehicles ensuring Reliable Services.
Company’s transportation fleet includes more than 150 owned vehicles, including trailers, designed exclusively for carrying containers, tankers and ODC cargo.
Though they continue to use hire vehicles for their services, Company believes that operating owned vehicles enables them to significantly reduce hiring and operational costs.
Increasing their Fleet Size.
As part of the expansion strategy, Company intends to further expand their fleet of trucks. Company’s fleet of goods transportation vehicles increased from 27 as of March 31, 2013 to 153 as of December 31, 2017. With the increase in fleet, Company aims to reduce their dependence on hired vehicles, reduce the operating costs and improve their operating margins.
Diversified Customer base across varied Industry Verticals.
Company has a client-base of over 1,300 clients across various industry verticals.
They serve a diverse mix of end markets across several industry sectors. In the goods transportation business, they serve a number of customers in the FMCG industry as well as in general commodities such as marble & granites, fabric, paper, yarn, tiles, pipes, sanitary products, agricultural products, etc.
Objectives of the Issue:
- Part repayment/prepayment of certain secured borrowings availed by the Company.
- Purchase of goods transportation vehicle.
- Funding the working capital requirements of the Company.
- General corporate purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Prepayment of certain secured borrowings availed by the Company. | 7.50 |
| Purchase of Goods Transportation vehicle | 5.16 |
| Working capital Requirements of the Company | 15.0 |
| General Corporate Purposes | 13.8 |
| Net Proceeds | 41.46 cr |
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 31st Dec 17 |
|---|---|---|---|---|---|---|
| Revenue | 30.64 | 97.38 | 161.65 | 170.78 | 201.29 | 266.53 |
| Net Profit | 0.26 | 0.61 | 0.31 | 1.06 | 1.95 | 6.81 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Accuracy Shipping Limited | 10 | 5.44 | 15.44 | 14.68% | 14.83 |
| Tiger Logistics India Limited | 10 | 9.73 | 20.11 | 21.84% | 44.56 |
| Allcargo Logistics Limited | 2 | 4.24 | 38.11 | 7.92% | 54.64 |
| Sical Logistics Limited | 10 | 8.19 | 26.12 | 8.29% | 98.77 |
| Total Transport Systems Ltd | 10 | 5.59 | 8.28 | 45.73% | 12.22 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 11th June 2018 |
| Issue Closes on:. | 14th June 2018 |
| Issue Price | Rs.81 – 84 |
| Face Value | Rs.10 |
| Minimum Lot | 1600 |
| Minimum Investment | Rs.1,34,000 |
| Issue Size | Rs.41.46 cr |
| Listing at | NSE SME |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) | Debt Equity Ratio |
|---|---|---|---|---|
| 5.44 | 15.44 | 14.68% | 14.83 | 2.04 |
| Check IPO Allotment Status: |
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Link InTime Website (Click on the below Link)https://linkintime.co.in/PublicIssue/ |
Knowledge Corner: (Click on the Link)
| Company Contact Info: |
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| Accuracy Shipping Limited Survey No 42 Plot No 11, Meghpar Borichi, Anjar, Kachchh- 370110 Gujarat, India Tel: 02836-258251 Fax: 02836-258253 Email: investors@asplindia.org Website: www.aspl.org |
| IPO Registrar Info: |
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| LINK INTIME INDIA PRIVATE LIMITED C-101, 1st Floor, 247 Park, L.BS. Marg, Vikhroli (West), Mumbai 400083, Maharashtra, India Tel: +91 022 49186200; Fax: +91 022 49186195 Email: accuracy.ipo@linkintime.co.in Website: www.linkintime.co.in |
| Lead Manager to the Issue: |
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| PANTOMATH CAPITAL ADVISORS PRIVATE LIMITED 406-408, Keshava Premises, Behind Family Court, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India Tel: +91-22 61946719; Fax: +91-22 2659 8690 Email: ipo@pantomathgroup.com Website: www.pantomathgroup.com |
