About the Company:
Premier Roadlines Ltd is engaged in providing logistics solutions to businesses, particularly surface transportation of goods ranging from 1 MT to 250 MT.
Company is goods transport agency providing general transport services, project logistics, and over dimensional/overweight cargo movements on a Pan India basis to our customers wherein we provide point to point services in which the goods are loaded from the premises of the customer and are delivered to the delivery point as specified by them.
Company mainly serves B2B customers under the Contract Logistics division, who have requirement to transport bulk quantities of their goods from one place to another within India and other neighboring countries like Nepal, Bhutan etc.
Company engaged in providing transportation of goods in containerized trucks to various industrial sectors such as Infrastructure, Energy, Power, Oil & Gas, Engineering, Construction, Metallurgical, Renewable energy etc.
To provide with transportation services, Company engages third party operators i.e. small fleet owners and agents who provide us with necessary transportation facilities such as containerized trucks, Trailers, Hydraulic axles etc.
In F.Y. 2022-23, Company has delivered over 26,000 orders across India.
Company’s Branch Network:
Company carry’s out logistics business through our widespread transportation network across India which we are operating through our Registered and Corporate Office located in Delhi, along with 28 Branch Offices located in various cities of India like Ahmedabad, Bengaluru, Chennai, Guwahati, Hyderabad, Kolkata, Mumbai, Nashik, Pune etc.
Company’s Customers:
Company’s esteemed customers includes KEC International Ltd, ThyssenKrupp Industrial Solutions (India) Pvt Ltd, Tata Project Ltd, G R Infraprojects Ltd, Tata Power Solar Systems Ltd, Sterlite Power Transmission Ltd etc.
Services Provided by the Company:
Project Transportation:
This includes winning of a contract to handle an entire project, planning of dispatch, choosing vehicle type and meeting daily placements targets by the customers’ end on a bulk basis.
Company carries out such services out for our esteemed customers like KEC International Limited, ThyssenKrupp Industrial Solutions (India) Private Limited, Tata Project Limited, G R Infraprojects Limited etc. on a pan India basis.
Contracted Integrated Logistics Services:
Company provides integrated logistics services to clients like Tata Power Solar Systems Limited, Sterlite Power Transmission Limited, Triveni Turbine Limited etc. with whom we have a contract of maximum upto 2 years.
Some of such clients are These services include vehicles ranging from 1MT to 30 MT. These movements are majorly from the client’s warehouse/ premises to the end customer of the client.
Over-Dimensional / Over-weight Cargo:
Over Dimensional Cargo is any cargo or goods that exceed a vehicle’s dimensions. Hence, they require added security and safety measures during transport to ensure that the goods are in a good condition.
Company provides Over-Dimensional / Over-weight Cargo facilities upto 250 MT to our clients such as Megha Engineering and Infrastructures Limited, Larsen and Toubro Limited, Praj Industries Ltd etc., that need over-the-top support and care during transit.
Company’s Fleet:
Company does not own any fleet. Company hires from small fleet owners and agents and fulfill the demands of the customer.
Appreciations, Awards and Accreditations:
- Awarded with “The Best Logistics-Large Fleet” for accelerating Large Fleet Transportation Services Pan India by Keller Group in Business Partner Meet-2022, Chennai.
- Awarded as Preferred Supplier, by Triveni Turbines in Logistics Summit, 2023.
Detail of Orders, Customers and Average Revenue per Order for the period/years indicated below:
Competition in the Business:
Some of the major competitors are VRL Logistics Limited, AVG Logistics Limited, Ritco Logistics Limited etc.
Management Team:
- Mr. Virender Gupta (Designation: Chairman & Managing Director)
- Mrs. Rakhi Gupta (Designation: Whole Time Director)
Objectives of the Issue:
Fresh Issue: (Rs.40.36 cr)
- Repayment and/or pre-payment, in full or part, of certain borrowings availed by our Company.
- Purchase of vehicle for commercial purpose.
- To meet working capital requirements.
- General Corporate Purpose.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Repayment and/or pre-payment, in full or part, of certain borrowings availed by our Company | 15 cr |
| Purchase of vehicle for commercial purpose | 2.75 cr |
| To meet working capital requirements | 14.0 cr |
Positives for the Company:
Company has deployed dedicated customised ERP software.
- In the current times, customers give preference to logistics service providers with a systematised process with no loopholes as they demand organised logistics operations.
- Company has a dedicated customised ERP software which helps us in all aspects beginning from the procurement of vehicles from the supplier, checking permits/legal documents of the vehicle and driver, to entering the order in our ERP and in the end final settlement of the account.
- A dedicated team examines and confirms the quality of the vehicle carrying the consignment of goods. Every detail is saved in the ERP; therefore, the information remains accurate.
- This provides us with real-time data for our fleet management. We also have GPS tracking system through which we can track the shipment details i.e. details of consignment like the current location of the goods and the exact time of the delivery of goods, and also the fleet details, in which the consignment is being transported.
Company has a Diverse Customer base.
- Company serves a large and diverse mix of end market customers across several industry sectors viz. Infrastructure, Energy, Power, Oil & Gas, Engineering, Construction, Metallurgical etc.
- Company generally do not enter into long term agreements with customers, however, company has developed long-standing relationships with these customers some of whom, like L&T constructions, KEC international, ThyssenKrupp and many more have been our customers from past many years.
- Company’s wide geographic coverage and operational network enables us to cater to a diverse mix of customers including corporate, small and medium enterprises (“SMEs”), distributors and traders.
- Company believes that diverse customer base and strong relationships with our key customers is essential to our business strategy and to the growth of our business.
- Owing to strong customer relationships and service, we can retain a number of our customers for a long period of time and retention of customers has enabled us to achieve business growth and expansion of operations.
Wide Transportation Network & Revenue from multiple geographies in India.
- Company carries out the logistics business through our widespread transportation network across India which we are operating through our Registered and Corporate Office located in Delhi along with 28 Branch Offices located in various cities of India.
- Company also has arrangements for outsourcing trucks, thereby providing us access to larger fleet size.
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | Upto 31st Jan 24 |
|---|---|---|---|---|
| Revenue | 94.15 | 138.68 | 192.05 | 174.20 |
| Net Profit | 1.55 | 3.88 | 7.18 | 8.74 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Premier Roadlines Ltd | 10 | 4.27 | 15.69 | 26.58% | 16.05 |
| VRL Logistics Ltd | 10 | 18.80 | 29.73 | 33.12% | 110.46 |
| AVG Logistics Ltd | 10 | 7.09 | 79.61 | 8.76% | 76.23 |
| Ritco Logistics Ltd | 10 | 9.94 | 27.08 | 16.37% | 60.70 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 10th May 2024 |
| Issue Closes on | 14th May 2024 |
| Issue Price | Rs.63 -67 |
| Face Value | Rs.10 |
| Minimum Lot | 2000 Shares |
| Minimum Investment | Rs.1,34,000 |
| Issue Constitutes | 26.35% |
| Issue Size | Rs.40.36 cr |
| Market Cap | Rs.153.17 cr |
| Listing at | NSE SME |
| Equity Shares Offered (Fresh) | 60,24,000 (Rs.40.36 cr) |
| Equity Shares Prior to the Issue | 1,68,38,547 |
| Equity Shares after the Issue | 2,28,62,547 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 15th May 2024 |
| Initiation of Refunds | on or Before 16th May 2024 |
| Credit of Equity Shares: | on or Before 16th May 2024 |
| Listing Date: | on or Before 17th May 2024 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 4.27 | 15.69 | 26.58% | 16.05 |
Also Read: Complete List of NSE/BSE Holidays List>>
| Should You Subscribe or Not ? (Markets Guruji’s View) |
|---|
| Premier Roadlines Ltd specializes in offering comprehensive logistics solutions tailored to diverse business needs, primarily focusing on surface transportation of goods ranging from 1 MT to 250 MT. As a prominent goods transport agency, company excels in providing general transport services, project logistics, and handling over dimensional/overweight cargo movements across India.
Catering predominantly to B2B clients under Contract Logistics division, company facilitates the transportation of bulk quantities of goods within India and neighboring countries like Nepal and Bhutan. Company’s expertise extends to containerized truck transportation, servicing various industrial sectors including Infrastructure, Energy, Power, Oil & Gas, Engineering, Construction, Metallurgical, and Renewable Energy. To bolster the transportation capabilities, Company has collaborated with third-party operators, including small fleet owners and agents, who provide essential transportation facilities such as containerized trucks, trailers, and hydraulic axles. As company embarks on a growth journey, risk taking investors can participate in this IPO. |
| Company Contact Info: |
|---|
| Premier Roadlines Ltd 501, 5th Floor, Plot No. 4B, Tower A, Nextra, Mayur Vihar, Phase-I Extension, East Delhi– 110091, Delhi, India. Tel No: +91-11- 4401 5000 E-mail: cs@prlindia.com Website: www.prlindia.com |
| Registrar to the Issue: |
|---|
| MAASHITLA SECURITIES PRIVATE LIMITED 451, Krishna Apra Business Square, Netaji Subhash Place, Pitampura, New Delhi, 110034, India. Tel No: +91-11-45121795 Email: ipo@maashitla.com Website: www.maashitla.com |
| Lead Manager to the Issue: |
|---|
| HEM SECURITIES LIMITED 904, A Wing, Naman Midtown, Senapati Bapat Marg, Elphinstone Road, Lower Parel, Mumbai-400013, Maharashtra, India. Tel. No.: +91- 22- 4906 0000; Email: ib@hemsecurities.com Website: www.hemsecurities.com |
| Check IPO Allotment Status: |
|---|
Maashitla Website: http://Maashitla/IPO/Allotment_Status |
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