Tejas Cargo IPO Day 1: NSE SME issue booked 31%; check subscription and other key details

The initial public offering (IPO) of Tejas Cargo India Ltd opened to muted demand on Friday, February 14 and failed to get fully booked at the end of bidding. The NSE SME issue was subscribed to only 31% on the first day.

The ₹105.84-crore public offer of the logistics service provider will close for bidding on February 18.

The IPO received bids for 13.18 lakh shares against 42.09 lakh shares on offer, as per the NSE data.

The Qualified Institutional Buyers (QIBs) applied for 4.17 lakh shares against the allocation of 11.84 lakh shares, leading to a subscription of 35% in the category. The Non-Institutional Investors (NIIs) booked only 3% of their allocated part of 8.88 lakh shares with bids for 28,800 stocks. The retail portion of the IPO was subscribed 41% with bids for over 8.52 lakh shares against 20.72 lakh shares set aside for the category. The employees of the company applied for 19,200 shares.

The investors looking forward to applying for Tejas Cargo Ltd shares during the IPO subscription can check key details about the public offer below:

Tejas Cargo IPO price band, offer size and other key details

Tejas Cargo IPO is a book-built issue aimed at raising ₹105.84 crore. The NSE SME issue consists entirely of a fresh issue of 63 lakh shares.

The IPO price band has been fixed between ₹160 and ₹168 per share.

The minimum application size for retail investors is a single lot size of 800 shares, requiring an investment of ₹1,28,000. For High Net-Worth Individuals (HNIs), the minimum application size is 1,600 shares, amounting to ₹2,68,800.

New Berry Capitals Pvt Ltd is the book-running lead manager for the IPO, and Bigshare Services Pvt Ltd is the registrar for the issue.

Tejas Cargo IPO share allotment status is expected to be finalised by February 19. The company will initiate refunds and transfer of shares to the Demat accounts on February 20.

Tejas Cargo Ltd has proposed to list its shares on the NSE SME platform, Emerge, on February 24.

Tejas Cargo IPO objects

Tejas Cargo intends to use the proceeds from the IPO for purchasing additional trailers, meeting working capital needs, repayment of debt and for general corporate purposes.

About Tejas Cargo

Tejas Cargo India Ltd, founded in March 2021, is a logistics services provider. The Faridabad-based company provides supply chain transportation services by road across India, offering express road transportation services under Full Truck Load (FTL) to various industries, including logistics, steel, e-commerce, FMCG and white goods.

About Tejas Cargo key financials

For the six-month period ended September 30, 2024, in the current financial year (FY25) the company reported revenue from operations of ₹252.6 crore and a net profit of ₹8.74 crore.

In FY24, the company’s revenue from operations increased to ₹419.32 crore against ₹381.78 crore in the preceding financial year. Tejas Cargo reported a net profit of ₹13.22 crore in FY24 compared to ₹9.86 crore in FY23.