About the Company:
AVG Logistics is a third-party logistics service operator offering logistics solutions to a wide range of customers.
They offer Full Truck Load (FTL) and “hub-and-spoke” transportation model and warehousing services to select clients with pan-India distribution network and automated technology systems.
Company is certified for Quality Management Systems (ISO 9000-2008) and have certifications from IBA, SEDEX, and FSSAI license for compliance of their standards. They have received the ASSOCHAM Excellence Award –Best Logistics Company of the year 2016.
Company’s Clients are from various sectors across India, including automotive and heavy engineering, telecom, food and agro, fast-moving consumer goods (“FMCG”), paint and dairy.
They have five (5) trans-shipment centres at Guwahati, Bangalore, Hyderabad, Delhi- UP border, and Kundli (Delhi-Haryana border) and forty nine (49) branches across India, covering twenty three (23) states.
They operate two hundred sixty four (264) owned containerised vehicles which are GPS-enabled vehicles, of which eighty five (85) are refrigerated (reefer) trucks.
Company provides warehousing facilities to select customers and company’s warehouses are well connected to several manufacturing and consumption clusters in India aggregating to 3.54 lakh square feet.
They have warehouses in Modinagar, Ghaziabad, Delhi and Panipat. Company is also in the process of setting up additional large format, multi-user warehouses in certain strategic locations and have acquired land at Agartala in Tripura and Mysore in Karnataka adding 1.08 lakhs square feet which will enable the expansion of warehousing space to 4.62 lakhs square feet by April, 2019.
Company offers services in three key areas:
- Transportation Services: whereby they provide point-to-point, lessthan truck-load, time-definite transportation services.
- Warehousing Services: whereby they provide warehousing, distribution and cold-chain warehousing.
- Value-added Services including, temperature-controlled logistics, supply chain solutions and cargo handling services at integrated check posts.
Segment Wise Revenue Breakup: (in lakhs)
Geographical Distribution of Revenue: (in Lakhs)
Management Team:
- Mr. Sanjay Gupta (Designation: Managing Director & Chief Executive Officer)
- Ms. Asha Gupta (Designation: Whole-Time Director)
- Mr. Shyam Sunder Soni (Designation: Non- Executive Director)
Promoters Average Acquisition Cost:
| Name of the Promoter | No. of Shares held | Average Acquisition Cost (in Rs.) |
|---|---|---|
| Mr. Sanjay Gupta | 12,32,500 | 5.88 |
| Ms. Asha Gupta | 54,82,500 | 6.05 |
| Ms. Niti Gupta | 4,89,000 | 6.95 |
Promoters Stake Pre & Post Issue:
| Shareholder Name | Pre Issue Stake (%) | Post Issue Stake (%) |
|---|---|---|
| Promoters | ||
| Mr. Sanjay Gupta | 17.10 | 11.97 |
| Ms. Asha Gupta | 76.06 | 53.24 |
| Ms. Niti Gupta | 6.78 | 4.78 |
| Promoter Group Entities | 0.01 | 0.00 |
| Total | 99.96% | 69.96% |
Objectives of the Issue:
- Setting-up Warehousing facilities at Agartala, Tripura and Mysore (Mysuru), Karnataka.
- Working Capital Requirement.
- General Corporate Purpose.
- To meet Issue related Expenses.
Positives for the Company:
Company is an integrated service provider with an extensive network of branches in a fast-growing third-party Logistics Market.
They have five (5) trans-shipment centres for LTL (less than truck load) at Guwahati, Bangalore, Hyderabad, Delhi-UP border, and Kundli (Delhi-Haryana border), forty nine (49) branches spread across India covering 23 states in India.
They also provide customers a mix of transportation services i.e. both road and rail, through the Container Corporation of India (CCI) and Indian Railways for express delivery of their shipments.
Extensive owned Fleet of Vehicles.
Company owns 264 containerized GPS-enabled vehicles of which 85 are refrigerated (reefer) trucks.
They own a young fleet of Tata Motors, Ashok Leyland and Eicher trucks equipped with a wide range of cargo loads beginning from 1 Ton, used for pick-up and delivery and 9 Ton to 20 Ton used for long haul transportation.
The ratio of owned to third party vehicles used in operations is about 1:3 in the FY 2017.
Diverse customer base across many sectors.
Company’s customer base spans many sectors, including retail, pharmaceutical, telecom, automotive and heavy engineering, food and agro, FMCG, paint and dairy. They have a diversified customer base in each of the sectors they serve, including Indian corporate groups and multinational companies.
Invest further in infrastructure and expand the Network.
Company intends to expand their warehousing facilities presently at Modinagar, Ghaziabad, Delhi and Panipat to new locations such as Agartala, in the North East of India and Mysore, in South India.
In order to take advantage of the business expansion opportunities offered by the GST regime, Company also intends to obtain leasehold or license rights over large, multi-user, integrated warehouses in certain specific well-connected and central locations in India.
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 30th Sept 17 |
|---|---|---|---|---|---|---|
| Revenue | 96.31 | 130.41 | 183.31 | 192.29 | 194.85 | 103.58 |
| Net Profit | 1.90 | 2.62 | 3.19 | 3.8 | 4.43 | 3.45 |
Valuation of Peer Group Companies: (in Crores)
| Company Name | Face Value | EPS | PE Ratio | Revenue | Net profit |
|---|---|---|---|---|---|
| AVG Logistics Ltd | 10 | 6.15 | 17.39 | 194.85 | 4.43 |
| Sical Logistics Ltd | 10 | 8.19 | 27.28 | 824.06 | 45.54 |
| Total Transport Systems Ltd | 10 | 5.59 | 8.19 | 200.00 | 5.58 |
| VRL Logistics | 10 | 7.72 | 51.44 | 1812.38 | 71.23 |
| Tiger Logistics Ltd | 10 | 9.73 | 20.23 | 298.27 | 10.28 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 28th March 2018 |
| Issue Closes on:. | 3rd April 2018 |
| Issue Price | Rs.105 – 107 |
| Face Value | Rs.10 |
| Minimum Lot | 1200 |
| Minimum Investment | Rs.1,28,400 |
| Issue Constitutes | 30.01% |
| Issue Size | Rs.33.06 cr |
| Market Cap | Rs.110.18 cr |
| Listing at | NSE SME |
| Total Equity Shares Offered (Fresh) | 30,90,000 |
| Equity Shares Prior to the Issue | 72,08,000 |
| Equity Shares after the ssue | 1,02,98,000 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 6th April 2018 |
| Initiation of Refunds | on or Before 9th April 2018 |
| Credit of Equity Shares: | on or Before 10th April 2018 |
| Listing Date: | on or Before 11th April 2018 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 6.15 | 17.39 | 20.32% | 30.27 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Long Term | 10% |
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/PublicIssue/ |
| Company Contact Info: |
|---|
| AVG Logistics Limited Shop No. 25, DDA Market Savita Vihar, Delhi 110092, India. Telephone: +91 11 4567 4071 CIN: U60200DL2010PLC198327 Email id: compliances@avglogistics.com Website: www.avglogistics.com |
| IPO Registrar Info: |
|---|
| LINKINTIME INDIA PRIVATE LIMITED C-101, 247 Park, L B S Marg, Vikhroli West, Mumbai 400083, Maharashtra. Tel: +91 22 4918 6200; Fax: +91 22 4918 6195 Email: avglogistics.ipo@linkintime.co.in Website: www.linkintime.co.in |
| Lead Manager to the Issue: |
|---|
| SYSTEMATIX CORPORATE SERVICES LIMITED A/603-606, The Capital, Plot No. C 70, G Block, Bandra-Kurla Complex, Bandra (East), Mumbai 400 051, Maharashtra. Tel: +91-22-6704 8000; Fax:+91-22-6704 8022 Email: avgipo@systematixgroup.in Website: www.systematixgroup.in |
