Cargosol Logistics SME
SME₹7.56 Cr issue
+51.43%
Listing gain over issue price
Issue size
₹7.56 Cr
1 lot at cut-off
₹1,12,000
Lot size
4,000shares
Open
28 Sep 2022
Close
30 Sep 2022
Allotment
06 Oct 2022
Listing
10 Oct 2022
Listing performance
Issue price
₹28
Listed at
₹42.40
Listing-day close
₹44.50
Latest price
—
Listing gain
+51.43%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 28 Sep 2022 – 30 Sep 2022
- Listing date
- 10 Oct 2022
- Face value
- ₹10 per share
- Issue price
- ₹28 per share
- Lot size
- 4,000 shares
- Total issue size
- ₹7.56 Cr
- Market cap at offer price
- ₹28.56 Cr
- Promoter holding
- 100.00% → 73.52% pre-issue → post-issue
- ISIN
- INE0KZM01011
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- 502, Swaroop Arcade, Sahar Road, Andheri, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 1,40,000 | — | — |
Application size
Minimum 4,000 shares per lot, in multiples, at ₹28
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 4,000 | ₹1,12,000 |
| S-HNI (min) | 2 | 8,000 | ₹2,24,000 |
| S-HNI (max) | 8 | 32,000 | ₹8,96,000 |
| B-HNI (min) | 9 | 36,000 | ₹10,08,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
₹28 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 8.28 | — |
| P/E (×) | 3.38 | — |
| Market cap | — | ₹28.56 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 38.81%
- ROCE
- 23.80%
- Debt / equity
- 1.41
- PAT margin
- 2.76%
- NAV per share
- ₹21.33
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Cargosol Logistics SME
Cargosol Logistics Limited (formerly Cargosol Logistics Private Limited) was originally formed as a partnership firm 'M/s Cargosol' on January 23, 2004, and converted to a private limited company on March 4, 2011. It was subsequently converted to a public limited company on March 15, 2022. The company operates as a complete 3PL provider, delivering end-to-end solutions in logistics and supply chain management involving multimodal transport operations (MTO), owning and operating container, sea and air freight services, transportation, warehousing, customs clearance services, and handling of project cargo. The company serves diverse sectors and maintains significant operations across India with international reach.
Company Analysis
from RHPCargosol Logistics Limited is a complete third-party logistics service provider delivering multimodal transport operations, sea and air freight, warehousing, customs clearance, and project cargo handling across logistics and supply chain domains.
Cargosol Logistics Limited (formerly Cargosol Logistics Private Limited) was originally formed as a partnership firm 'M/s Cargosol' on January 23, 2004, and converted to a private limited company on March 4, 2011. It was subsequently converted to a public limited company on March 15, 2022. The company operates as a complete 3PL provider, delivering end-to-end solutions in logistics and supply chain management involving multimodal transport operations (MTO), owning and operating container, sea and air freight services, transportation, warehousing, customs clearance services, and handling of project cargo. The company serves diverse sectors and maintains significant operations across India with international reach.
Third-party logistics (3PL)Freight forwardingSupply chain managementWarehousing and storageTransportation and logistics
Objects of the Issue
- Purchase of vehicle for commercial purpose ₹233.42 lakhs p.20
- Purchase of Containers for expansion of the NVOCC division ₹206.39 lakhs p.20
- To meet working capital requirements ₹200.00 lakhs p.20
- General Corporate Purpose ₹28.77 lakhs p.20
- Issue Expenses ₹87.42 lakhs p.20
- Purchase of vehicle for commercial purpose ₹ 233.42 Lakhs p.72
- Purchase of Containers for expansion of the NVOCC division ₹ 206.39 Lakhs p.73
- To meet working capital requirements ₹ 200.00 Lakhs p.73
- General Corporate Purpose ₹ 28.77 Lakhs p.74
- Public Issue Expenses ₹ 87.42 Lakhs p.74
Issue Structure
- Total Issue
- ₹756.00 lakhs
- Fresh Issue
- ₹756.00 lakhs (27,00,000 equity shares of face value ₹10 each at issue price ₹28 per share)
- Offer for Sale
- Nil
- Price Band
- ₹28 per equity share
- Lot Size
- 4,000 Equity shares
- Face Value
- ₹10 per share
Business Model
The company generates revenue through provision of third-party logistics services including: multimodal transport operations, sea freight forwarding (NVOCC - Non Vessel Owning Common Carrier services where the company leases vessel space from shipping companies and resells to customers), air freight forwarding and aircraft capacity chartering, warehousing and storage services, customs clearance services, project cargo handling, temperature-controlled logistics for perishable products, and heavy lift transportation services.
Business Segments
Operates a fleet of owned and leased containers with firm arrangements with ship owners, charters, and shipping lines for transportation of cargo. Provides slot arrangements with feeder operators and mainline operators to procure onboard space on vessels sold to customers. Currently operates in Indian Sub-continent, Middle East, Upper Gulf, South East Asia and part of Europe sectors.
Provides ocean freight, air freight, surface transportation, and rail transport services. Ocean freight includes consolidation, multimodal transportation, customs clearance, cargo insurance, and specialized handling. Air freight services include cargo pick-up, export/import clearance, and door-to-door express products. Surface transportation uses company-owned and third-party vehicles for general and heavy cargo.
Operates warehouse located at Survey No.105, Plot No.95/96, Pimpri Village, MP Road, Dahisar Mori, Dist. Thane, Navi Mumbai offering approximately 35,000 square feet of storage space. Equipped with end-to-end surveillance, material handling equipment, 24X7 trained manpower, packaging facility, and Epoxy Flooring with 16 tons per sq. ft. load capacity for handling standard and non-standard cargo, ODC shipments, perishables, and volatile goods.
Specializes in handling project cargo requiring special care and expertise for industries including oil, gas, construction, energy, maritime, mining, and heavy machinery. Handles complex transport logistics for Break Bulk (BB), Heavy Lift (HL), and Out of Gauge (OOG) cargo including over-dimensional and over-weight cargo.
Full-service freight forwarding including freight charges, handling and other charges related to carriage, handling, packing and distribution of goods, and commission income.
Multimodal transportation, sea and air freight, warehousing, custom clearance, and project cargo handling
SWOT Analysis
Strengths
- • Complete 3PL provider with end-to-end multimodal logistics solutions(p.20)
- • Strong revenue growth trajectory with nearly 2x growth in FY2022(p.36)
- • Established relationships with shipping companies and overseas agents over more than a decade(p.28)
- • Integrated end-to-end 3PL logistics services across multimodal transport(p.92)
- • Strong and established global network through subsidiary and agency agreements(p.96)
- • Experienced promoter leadership with 30+ years industry expertise(p.92)
- • Diversified customer base across multiple industry verticals(p.97)
- • Warehousing facilities with strategic location connectivity(p.71)
- • Multi-Modal Transport Operator License and IATA accreditation(p.92)
- • Strong revenue and profitability growth trajectory(p.93)
- • Full-service freight forwarding capabilities across domestic and international routes(p.144)
- • Established industry presence with 30 and 29 years of combined experience by promoters(p.136)
- • Significant revenue growth trajectory with 94% year-on-year increase FY2022(p.142)
- • Strategic associate partnership with Cargosol LLC generating profitable returns(p.142)
- • Professional management structure with qualified CFO and Company Secretary(p.131)
- • Strong profitability growth with PAT increasing 215.96% YoY to Rs. 620.86 Lakhs(p.180)
- • Significant revenue expansion with 93.67% YoY growth in revenue from operations(p.180)
- • Improved return on net worth at 38.81% as of March 31, 2022(p.171)
- • Experienced promoters with deep industry expertise in logistics and shipping(p.177)
- • Comprehensive 3PL service portfolio with multimodal transport, warehousing, customs clearance, and project cargo handling(p.177)
- • Regulatory certifications including MTO License, IATA Accreditation, and ISO 28000:2007 certification(p.177)
Weaknesses
- • Substantial revenue concentration among few customers(p.30)
- • No Custom House Agent license; dependence on third party (OFS Cargo Private Limited)(p.27)
- • Subsidiary company incurring losses with negative networth(p.31)
- • High debt burden with total borrowings of ₹2255.15 lakhs as of March 31, 2022(p.35)
- • Company and promoters involved in outstanding litigations including criminal cases(p.28)
- • Unsecured loans of ₹238.59 lakhs that may be recalled by lenders at any time(p.35)
- • Past non-compliance with Companies Act provisions(p.31)
- • Dependence on limited number of large revenue clients(p.97)
- • Concentration of warehouse operations in single location(p.71)
- • Small operating fleet of owned commercial vehicles(p.92)
- • Heavy reliance on third-party service providers and vendors(p.92)
- • Limited independent customs clearance capability(p.95)
- • High leverage with debt-to-equity ratio of 1.41, indicating significant debt dependency(p.167)
- • Thin profit margins with net profit ratio of 2.76%, vulnerable to operational fluctuations(p.169)
- • Deteriorating current ratio declining from 1.23 to 1.04, indicating liquidity pressure(p.166)
- • Concentrated ownership with 100% promoter shareholding pre-IPO creating governance risks(p.134)
- • Significant disputed receivables of Rs. 51.23 lakhs outstanding for more than 3 years(p.158)
- • High dependence on a limited number of customers for revenue(p.182)
- • Significant debt burden with Total Debt/Equity ratio of 1.41 pre-issue(p.185)
- • Criminal litigation against promoters and company for alleged wrong delivery of consignment(p.186)
- • Material customs duty and penalty liabilities of Rs. 55.37 Lakhs pending before High Court(p.187)
- • Multiple pending civil litigation cases with significant financial exposure(p.187)
- • Concentration of assets and operations in limited geographic locations(p.177)
Opportunities
- • India's rapidly growing logistics sector representing 5% of GDP and employing 2.2 crore people(p.20)
- • Continued outsourcing trend as third-party logistics providers offer efficiency advantages(p.33)
- • India's fastest-growing major economy status creating increased demand for logistics services(p.20)
- • Expansion of infrastructure for new facilities to increase operational capacity(p.34)
- • Expansion into new geographic markets and locations(p.98)
- • Opportunity to expand services to existing customers(p.98)
- • Growing Indian logistics market with rising consumption and e-commerce(p.90)
- • Technology upgradation and digital transformation initiatives(p.98)
- • Expansion into new service segments including equipment rental(p.98)
- • Government infrastructure development initiatives supporting logistics(p.87)
- • Expansion into international markets through established foreign subsidiaries and associates(p.119)
- • Capacity expansion through capital investments in vehicles and infrastructure(p.162)
- • Growth in logistics services through new international trade routes and markets(p.142)
- • Enhancement of service offerings through technology and operational improvements(p.116)
- • Expansion of warehousing and logistics capabilities across multiple consumption clusters in Maharashtra(p.177)
- • Growing demand for specialized project cargo and heavy-lift logistics solutions(p.177)
- • Diversification across multiple customer sectors including automotive, FMCG, telecom, food, and paint industries(p.177)
- • International expansion through 3PL partner network and NVOCC operations(p.177)
- • Potential for geographic expansion to additional major logistics hubs(p.177)
Threats
- • Fluctuations in fuel costs and inability to pass on increases to customers(p.26)
- • Intense competition from organized and unorganized third-party logistics providers(p.36)
- • Seasonality affecting business operations and causing quarterly fluctuations(p.34)
- • COVID-19 pandemic impacts including increased transportation costs and supply chain disruptions(p.36)
- • Regulatory changes and compliance requirements that could increase costs(p.41)
- • Economic recession reducing demand for transportation services(p.41)
- • Dependence on third-party vendors including leased vehicles and warehousing space(p.33)
- • Infrastructure disruptions affecting transportation network operations(p.34)
- • Intense competition from organized and international logistics players(p.99)
- • Supply chain disruptions and volatility in maritime trade(p.84)
- • Global economic slowdown and GDP contraction risks(p.84)
- • Regulatory changes and compliance requirements across jurisdictions(p.103)
- • Exposure to foreign exchange and commodity price volatility(p.76)
- • Pandemic and COVID-19 related disruptions to logistics operations(p.84)
- • Regulatory compliance requirements under multiple legislations including FSS Act and IT Security Rules(p.108)
- • Competition in logistics industry with pressure on freight charges and margins(p.161)
- • Economic sensitivity to business cycles and external economic conditions(p.145)
- • Forex exposure through international operations and foreign currency transactions(p.148)
- • Fuel price volatility impacting operating costs in transportation services(p.161)
- • Intense competition in logistics and 3PL sector affecting pricing and margins(p.182)
- • Sensitivity to fuel prices, freight rates, and transportation cost volatility(p.179)
- • Dependence on regulatory compliance and customs clearance approvals(p.177)
- • Exposure to foreign exchange rate fluctuations in international operations(p.171)
- • Risk of seasonality in customer demand as clients experience cyclical business patterns(p.182)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Roshan Kishanchand Rohira | Promoter | 50.00% | 36.76% |
| Mr. Samuel Janathan Muliyil | Promoter | 50.00% | 36.76% |
| Mrs. Bhagyashree Roshan Rohira | Promoter Group | 0.00% | 0.00% |
| Mrs. Stalgy Samuel Muliyil | Promoter Group | 0.00% | 0.00% |
| Mr. Roshan Kishanchand Rohira | Promoter | 50.00% | 36.76% |
| Mr. Samuel Janathan Muliyil | Promoter | 50.00% | 36.76% |
| Mrs. Bhagyashree Roshan Rohira | Promoter Group | 0.00% | 0.00% |
| Mrs. Stalgy Samuel Muliyil | Promoter Group | 0.00% | 0.00% |
| Mr. Roshan Kishanchand Rohira | Promoter | 50.00% | — |
| Mr. Samuel Janathan Muliyil | Promoter | 50.00% | — |
| Roshan Kishanchand Rohira | Promoter | — | — |
| Samuel Janathan Muliyil | Promoter | — | — |
Leadership
Mr. Roshan Kishanchand Rohira · Managing Director
Mr. Samuel Janathan Muliyil · Chairman & Executive Director
Mrs. Stalgy Samuel Muliyil · Non-Executive Director
Mr. Anilkumar Ayodhyaprasad Sharma · Independent Director
Mr. Pramod Kumar Bajaj · Independent Director
Mr. Cletus William D'souza · CFO
Mr. Vinay B Karkera · Company Secretary & Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Cargosol Logistics SME IPO FAQs
What is the lot size of Cargosol Logistics SME IPO?
The minimum lot size of Cargosol Logistics SME IPO is 4,000 shares. One lot costs ₹1,12,000 at the cut-off price.
When does Cargosol Logistics SME IPO open and close?
Cargosol Logistics SME IPO opened for subscription on 28 Sep 2022 and closed on 30 Sep 2022.
What is the listing date of Cargosol Logistics SME IPO?
Cargosol Logistics SME IPO listed on 10 Oct 2022.