Tejas Cargo India shares list at 4% premium over IPO price on NSE SME

Tejas Cargo India made a firm debut on the NSE SME platform on Monday, February 24, with its shares listing at a premium of 4%.

Shares of the company opened for trade at ₹175 apiece on the NSE, up 4.17% from the issue price of ₹168 per piece.

More than 13.28 lakh equity shares changed hands on the NSE SME platform, Emerge. The total turnover was ₹23 crore. The market valuation of the company stood at ₹401 crore.

However, within minutes of listing, the stock pared early gains to trade 4% lower at ₹168 per share due to profit booking.

At the listing price of ₹175 per share, the value of a single lot of equity shares bagged by IPO investors stood at ₹1,40,00 (₹175 x 800). The IPO investors would have made listing gains of ₹5,600 per lot as the minimum investment in a single lot was ₹1,34,400 (₹168 x 800), at the upper price band.

Tejas Cargo India launched its IPO on NSE from February 14 to February 18 to mobilise ₹105.84 crore from public investors.

The initial public offering of Tejas Cargo India comprised a fresh issuance of 63 lakh shares, worth ₹105.84 crore, and no Offer-for-Sale (OFS) component. The company had fixed the IPO price band at ₹160 to ₹168 apiece.

The NSE SME IPO was overall subscribed 1.22 times on the final day of bidding. The IPO garnered applications for more than 5.61 lakh shares compared to 42.09 lakh shares on offer.

Among investor categories, the Non-Institutional Investors’ (NIIs) portion was booked 1.42 times as applications for 12.68 lakh shares were received against 8.88 lakh shares set aside for the category. The retail quota was subscribed 1.09 times as retail investors placed bids for 22.68 lakh shares against 20.72 lakh shares on offer.

The Qualified Institutional Buyers (QIBs) quota was booked 1.33 times as applications for 15.78 lakh shares were received against 11.84 lakh shares on offer for QIBs. The employees’ segment received bids for 46,400 shares.

Faridabad-based Tejas Cargo India provides logistics services to companies in steel, FMCG, white goods, logistics and other manufacturing sectors.

The company offers long-haul supply chain transportation under Full Truck Load across the country. The company operates on a pan-India basis through an established network of twenty-three branches having facilities for placements, loading and unloading.

As of October 31, 2024, its fleet size comprised 1,131 vehicles, including 218 trailers and 913 container trucks, with a tonnage capacity of up to 42 tonnes. Of the total fleet, 292 vehicles were debt-free, consisting of 34 trailers and 258 container trucks.

The company has proposed to use ₹31.76 crore of IPO proceeds for the purchase of additional trailers. The company will use ₹30 crore for funding working capital needs and ₹15 crore for repayment and pre-payment of certain borrowings availed by the company. The rest of the funds would be used for general corporate purposes.

Tejas Cargo reported revenue of ₹252.6 crore for the six-month period to September 30, 2024. Its net profit stood at ₹8.74 crore in the April-September period of FY25.

Tejas Cargo reported revenue from operations of ₹419.32 crore for the 2023-24 financial year, while net profit stood at ₹13.22 crore.