Tara Chand Logistic Solutions Ltd

Tara Chand Logistic Solutions

About the Company:

Tara Chand Logistic Solutions Ltd was incorporated on February 10, 2012 for the purpose of acquiring the proprietary business of M/s. Tara Chand & Sons, which was in existence since 1989.

Company is engaged in providing reliable and affordable logistic and supply chain services including Transportation and Warehousing, Equipment Rental and Steel Processing and Distribution.

Company’s business verticals serve a broad range of industries, including steel, urban and rural infrastructure, oil and gas, renewable energy etc.

As of December 31, 2017 Company’s transportation fleet included 42 owned trailers and their equipment rental fleet included 292 owned cranes ranging from 10 MT-800 MT lifting capacity.

Company owns automated steel processing machineries like shear line, twin master, robo master, compressor, decoiling machines etc. totaling to 32.

In their warehousing division, they have handled 1.5 million MT of steel in nine months upto December 31, 2017.They also provide services through equipment hired by them as and when required to provide timely and quality services to their clients.

Company is also in the business of providing reinforcement steel processing services to the infrastructure and construction sector.Currently they have an installed capacity of 1,20,000 MT p.a. for processing of steel used in the construction industry primarily reinforcement TMT bars into various shapes and sizes as per customer requirements.

Capacity Utilization of Steel processing & Distribution Business:

The reinforcement steels is usually ranging from 8 mm to 40 mm. They operate under the brand name of First Choice Rebar Shapes and Solutions from their plant located near Taloja MIDC, Mumbai as well as at client site locations/warehouses.

Company’s goods transportation business serves a broad range of industries, including Steel, Construction and Infrastructure.

Revenue Breakup Across Verticals (Percentage Wise):


Company’s Major Clientele includes:

  • Reliance industries ltd
  • Larsen & Toubro Ltd.
  • Steel Authority of India Ltd.
  • Rashtriya Ispat Nigam Ltd.
  • Oil and Natural Gas Corporation Ltd.
  • Tata Projects Ltd.
  • Hindustan Construction Company Ltd.
  • J Kumar Infraprojects Ltd
  • Welspun Corp
  • ITD Cementation India Ltd
  • Bharat Heavy Electricals Ltd.


Certifications & Recognitions Received by the Company in the Recent Past:

  • Company has received the appreciation letter from Rashtriya Ispat Nigam Ltd. for loading of 20 wagons in record time of four hours on March 18, 2017.
  • On January 01, 2018 Company has been appreciated for maintaining the best Truck Turnover time among the stockyards in the country over the last four years by Rashtriya Ispat Nigam Limited.
  • Company was certified by Coastal Projects Limited for providing excellent services of hired equipment with minimum downtime dated September 08, 2016.
  • Company was certified by McNally Bharat Engineering Constructions Limited for providing excellent services of hired equipment with minimum downtime dated June 02, 2016.


Benefits of GST Implementation for the Logistics Sector:

The implementation of GST is benefiting the Indian economy by reducing high tax incidence and logistics costs.

The unified tax has replaced most indirect taxes, including the excise duty and service tax at the central level and VAT and local levies at the state level.

Because of Implementation of GST, the logistic cost has been reduced to 10-12% of total value of goods as compared to 14% of total value of goods Pre GST.

Management Team:

  1. Mr.Vinay Kumar (Designation: Managing Director)
  2. Mr.Ajay Kumar (Designation: Whole Time Director)
  3. Mr.Himanshu Aggarwal (Designation: Executive Director)


Promoters Average Acquisition Cost:

Name of the Promoter No. of Shares held Average Acquisition Cost (in Rs.)
Vinay Kumar 81,29,680 10.52
Ajay Kumar 16,94,500 14.06


Promoters Stake Pre & Post Issue:

Shareholder Name Pre Issue Stake (%) Post Issue Stake (%)
Vinay Kumar 81.91% 59.58%
Ajay Kumar 17.07% 12.42%
Promoter Group Entities             1.01%              0.72%
Total 99.99% 72.73%


Objectives of the Issue:

  • Repayment of Certain Secured Borrowings availed by the Company.
  • Purchase of Capital Equipment.
  • To meet working capital requirement
  • General Corporate purposes
  • Issue Expenses


Fund Utilization:

Particulars Amount (Rs. in Crores)

Repayment of Certain Secured Borrowings availed by the Company

Purchase of Capital Equipment 2.0
To meet working capital requirement 8.06
General Corporate Expenses 4.10
Issue Expenses 1.19
Net Proceeds 19.26 crores


Financials of the Company:

(in Crores) FY 13 FY 14 FY 15 FY 16 FY 17 31st Dec 17
Revenue  22.58  23.97  39.25  46.21  52.65  54.18
Net Profit  0.56  0.65  0.69  1.18  2.63  3.66


Valuation of Peer Group Companies:

Company Name Face Value EPS PE Ratio RoNW (%) NAV
Tara Chand Logistic Solutions Ltd 10 2.82 19.50 17.48 16.14
Lancer Container Lines Ltd 10 2.94 26.45 20.50 17.41
Tiger Logistics Ltd 10 9.75 22.03 24.56 44.56


IPO Details:

Details Info
Issue Opens on 13th March 2018
Issue Closes on:. 15th March 2018
Issue Price Rs.55
Face Value Rs.10
Minimum Lot 2000
Minimum Investment Rs.1,10,000
Issue Constitutes 27.26%
Issue Size Rs.20.46 cr
Market Cap Rs.75.04 cr
Listing at NSE SME
Total Equity Shares Offered (Fresh) 37,20,000
Equity Shares Prior to the Issue 99,24,980
Equity Shares after the Issue 1,36,44,980


Grey Market Premium :

Date IPO Price Band Grey Market premium
08/03/18 Tara Chand Logistic Solutions Ltd 55 3 – 4


Subscription Details:

(Subscription-Category-Wise (no. of times) Till time : 06:00 PM) Shares Offered Day-1 Day-2 Day-3
HNI  17,64,000  0.25  0.35  2.64
Retail  17,64,000  0.24  0.87  2.49
Others  1,92,000  0.00  0.00  0.09
Employee  ———–  —-  —–  —-
TOTAL  37,20,000  0.23  0.58 2.62 


IPO Valuation Parameters:

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV)
2.82 19.50 17.48% 16.14


Markets Guruji Opinion:

IPO View Apply For: Expected listing Gain:
Subscribe Long Term 15%


Company Contact Info:
Tara Chand Logistic Solutions Limited
342 Industrial Area, Phase I,
Chandigarh, 160002 India.
CIN: U63090CH2012PLC033556
Registration Number: 033556
Tel. No: – +91-172-2650380
E-mail: info@tarachandindia.in
Website: www.tarachandindia.in


IPO Registrar Info:
Unit no.- 1, Luthra Industrial Premises, Safed Pool,
Andheri Kurla Road, Andheri (East), Mumbai- 400 072, India.
Tel: +91-22-2851 5606/44
Fax: +91-22-2851-2885
Email: sharexindia@vsnl.com
Investor Email: tclsl.ipo@sharexindia.in
Website: www.sharexindia.com


Lead Manager to the Issue:
904, A Wing, 9th Floor,
Naman Midtown, Senapati Bapat Marg,
Elphinstone Road, Mumbai 400 013, India.
Tel: +91-22-4906 0000
Fax: +91-22-4906 0061
Email: ib@hemsecurities.com
Investor Email: redressal@hemsecurities.com
Website: www.hemsecurities.com