Deccan Transcon Leasing
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 13 Sep 2024 – 19 Sep 2024
- Listing date
- 24 Sep 2024
- Face value
- ₹10 per share
- Issue price
- ₹108 per share
- Lot size
- 1,200 shares
- Issue type
- Book Building issue
- Total issue size
- ₹65.06 Cr
- Market cap at offer price
- ₹245 Cr
- Promoter holding
- 87.17% → 64.13% pre-issue → post-issue
- ISIN
- INE0S7C01019
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Unistone Capital Pvt.Ltd.
- Registered office
- Suite No 507, 5th floor, Image Capital Park, Image Garden Road, Madhapur, Shaikpet, Telangana
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 14,00,400 | — | — |
| Market maker | 3,30,000 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹108
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,29,600 |
| S-HNI (min) | 2 | 2,400 | ₹2,59,200 |
| S-HNI (max) | 7 | 8,400 | ₹9,07,200 |
| B-HNI (min) | 8 | 9,600 | ₹10,36,800 |
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.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 6.87 | 5.20 |
| P/E (×) | 15.72 | 20.77 |
| Price to book (×) | 5.77 | — |
| Market cap | — | ₹245 Cr |
Key performance indicators
- Return on net worth
- 36.69%
- ROCE
- 41.43%
- Debt / equity
- 0.72
- PAT margin
- 7.75%
- NAV per share
- ₹18.73
- Price to book
- 5.77
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Deccan Transcon Leasing
Deccan Transcon Leasing Limited, incorporated in 2007 originally as Libenil Logistics Private Limited and renamed to Deccan Transcon Leasing Private Limited in 2013, was converted into a public limited company in 2024. The company specializes in transportation of bulk liquids and hazardous chemicals utilizing tank containers as the primary mode of transport. It provides a mix of services including domestic logistics of tank containers, tank fleet management solutions, custom clearance, transportation, and Non-Vessel Operating Common Carriers (NVOCC) services. The company operates a fleet of more than 2,500 tank containers and more than 750 TEUs of box containers (both leased and owned). As of July 31, 2024, more than 100 customers have been associated with the company for longer than 3 years, and it has served more than 884 customers in the last one year. The company's revenues are primarily derived from freight and shipping services to the chemical and petrochemical sector.
Company Analysis
from RHPDeccan Transcon Leasing Limited provides end-to-end freight and shipping logistics solutions including tank container leasing, tank fleet management, custom clearance, and NVOCC services, primarily for the chemical and petrochemical industries.
Deccan Transcon Leasing Limited, incorporated in 2007 originally as Libenil Logistics Private Limited and renamed to Deccan Transcon Leasing Private Limited in 2013, was converted into a public limited company in 2024. The company specializes in transportation of bulk liquids and hazardous chemicals utilizing tank containers as the primary mode of transport. It provides a mix of services including domestic logistics of tank containers, tank fleet management solutions, custom clearance, transportation, and Non-Vessel Operating Common Carriers (NVOCC) services. The company operates a fleet of more than 2,500 tank containers and more than 750 TEUs of box containers (both leased and owned). As of July 31, 2024, more than 100 customers have been associated with the company for longer than 3 years, and it has served more than 884 customers in the last one year. The company's revenues are primarily derived from freight and shipping services to the chemical and petrochemical sector.
Objects of the Issue
- Funding capital expenditure requirements towards procurement of Tank Containers ₹2,774.76 lakhs p.28
- Funding for working capital requirements of the Company ₹1,150.00 lakhs p.28
- General corporate purposes p.28
- Funding capital expenditure requirements towards procurement of Tank Containers ₹2,774.76 lakhs p.91
- Funding working capital requirements of our Company ₹1,150.00 lakhs p.94
- General corporate purposes [●] lakhs p.97
- Funding capex for fleet expansion to increase the size of the fleet by containers p.131
- Not specified in this part of the document
Issue Structure
- Total Issue
- Up to ₹ [●] Lakhs (60,24,000 Equity Shares of Face Value ₹10 each at ₹ [●] per share)
- Fresh Issue
- Up to 55,24,000 Equity Shares aggregating up to ₹ [●] Lakhs
- Offer for Sale
- Up to 5,00,000 Equity Shares aggregating up to ₹ [●] Lakhs
- Price Band
- Floor Price: ₹ [●] per Equity Share; Cap Price: ₹ [●] per Equity Share (Cap Price at least 105% of Floor Price)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹ 10 each
Business Model
The company earns revenue primarily through providing freight and shipping services (94.27% of FY2024 revenue) and tank container leasing services (5.73% of FY2024 revenue). It offers end-to-end logistics solutions combining its own tank and box container fleet with third-party service providers. Revenue is generated through spot confirmations and tender-based contracts with customers, with services including tank container leasing, freight and shipping, custom clearance, and NVOCC services. The company has long-term lease agreements for containers ranging from 1-10 years with specific minimum lease periods.
Business Segments
SWOT Analysis
- • Extensive agency network with global coverage enabling access to worldwide shippers(p.27)
- • End-to-end integrated logistics solutions under one roof(p.27)
- • Long-standing customer relationships with 100+ customers associated for over 3 years(p.27)
- • Large customer base with 884 customers served in the last year(p.27)
- • Substantial fleet infrastructure with 2500+ tank containers and 750+ TEUs box containers(p.37)
- • Listing on NSE Emerge platform enhances visibility and creates public market(p.89)
- • Fleet expansion demonstrates commitment to meeting client demands across sectors(p.91)
- • Long-standing business track record as qualitative strength(p.101)
- • Strong knowledge and expertise of promoters(p.101)
- • Global coverage through network of agents(p.101)
- • End-to-end logistics solutions capability(p.101)
- • Long-standing business track record with 5,000+ customers since 2007(p.130)
- • Strong long-term customer relationships with 40% repeat business in FY24(p.130)
- • Experienced promoter team with combined 60+ years in logistics industry(p.131)
- • Global coverage through network of 42 agency agreements across 40 countries(p.131)
- • End-to-end logistics solutions with tank containers, box containers, and NVOCC services(p.121)
- • Strong financial performance with EBITDA margin expansion to 12.47% in FY24(p.129)
- • Large fleet of 2,500+ tank containers and 750 TEUs box containers as of July 2024(p.131)
- • Extensive agency network with global coverage(p.220)
- • Large fleet and container capacity(p.220)
- • Diversified service portfolio under single roof(p.220)
- • ISO certifications for quality and safety(p.220)
- • Strong partnerships including subsidiaries and associates(p.220)
- • Experienced promoter team with shipping and logistics expertise(p.220)
- • Growing customer base(p.220)
- • Growing lease rental revenue segment(p.224)
- • High revenue concentration from top 10 customers (51.06% of revenue in FY2024)(p.37)
- • Significant dependency on top 5 suppliers (31.61% of purchases in FY2024)(p.37)
- • Lack of long-term customer agreements; reliance on spot confirmations(p.38)
- • No Custom House Agent license; dependent on third-party CHA services(p.38)
- • High fixed costs including lease rentals regardless of container utilization(p.40)
- • Significant outstanding receivables of ₹4,160.09 lakhs as of March 31, 2024(p.40)
- • Unsecured loans of ₹643.91 lakhs as of July 31, 2024 that may be recalled anytime(p.48)
- • Historical delays and discrepancies in statutory filings with ROC(p.44)
- • Heavy dependence on upfront payments reducing credit period from vendors(p.94)
- • Significant working capital requirement due to invoice timing delays(p.94)
- • Revenue decline in FY 2024 versus prior year(p.94)
- • High trade receivable days increase working capital burden(p.97)
- • Orders finalized monthly creating short-term commitment uncertainty(p.95)
- • Heavy dependence on top 10 customers for 51.06% of revenue in FY24(p.129)
- • Revenue decline of 15.06% in FY24 compared to FY23(p.129)
- • High revenue concentration in Asia (73.33%) with limited diversification(p.128)
- • Debt-to-equity ratio of 0.72, indicating moderate leverage(p.130)
- • Over 80% revenue from chemicals & petrochemicals sector creates industry concentration risk(p.129)
- • No dedicated fleet storage infrastructure; relies on third-party depot services(p.136)
- • High customer concentration(p.227)
- • High supplier dependence(p.227)
- • Substantial debt obligations and finance costs(p.223)
- • Significant GST and service tax litigation exposure(p.214)
- • Trade receivable concentration with aging issues(p.209)
- • Global freight & logistics market projected to grow to $18.69 billion by 2026 at 4.4% CAGR(p.27)
- • Global logistics market expected to reach $6.55 trillion by 2027 at 4.7% CAGR(p.27)
- • Expansion of in-house cloud-based ERP software with real-time tracking capability(p.46)
- • Technology integration with 20% of fleet currently equipped with sensors and plans to extend to entire fleet(p.46)
- • Capital expenditure planned for procurement of 2,774.76 lakhs worth of new tank containers(p.28)
- • Strategic tank container fleet expansion to meet growing client demands(p.91)
- • Significant customer base growth demonstrating market demand(p.94)
- • Expansion into new partnerships and tie-ups with better credit terms(p.94)
- • India positioned as fastest-growing major economy with strong FDI inflows(p.115)
- • Strong domestic demand-driven economy providing growth leverage(p.116)
- • Global logistics market expected to reach $6.55 trillion by 2027 at 4.7% CAGR(p.116)
- • India's ports sector capacity expected to grow at 5-6% CAGR till 2022, adding 275-325 MT(p.120)
- • Government investment of $82 billion planned for port projects by 2035(p.118)
- • Strong e-commerce growth with global sales pace to reach $6.3 trillion in 2024(p.117)
- • Expansion strategy targeting fleet growth and new geographic markets(p.131)
- • Technology upgradation to digitalize services and improve operational efficiency(p.132)
- • Government enabling 100% FDI for port/harbour projects and 10-year tax holiday for port enterprises(p.118)
- • Expansion of leasing business model(p.221)
- • Growth in associate company profits(p.224)
- • Expansion of fleet capacity and service offerings(p.223)
- • Diversification into new segments(p.220)
- • High exposure to chemical and petrochemical industry (94.27% of revenue in FY2024)(p.38)
- • Dependency on China-based supplier for tank containers amid strained India-China relations(p.40)
- • China-based customer within top 10 customer base heightens geopolitical exposure(p.37)
- • Significant fluctuations in fuel costs beyond company control impacting transportation service fees(p.39)
- • Hazardous cargo handling exposes company to environmental and liability risks(p.43)
- • Insurance coverage gaps for certain operational risks including explosions and terrorism(p.43)
- • Foreign exchange rate fluctuations affecting US Dollar-denominated revenues(p.43)
- • Intense competition from organized and unorganized players affecting market share and margins(p.48)
- • Outstanding tax proceedings of ₹211.18 lakhs against the company(p.41)
- • Regulatory changes and new compliance requirements in logistics and shipping sector(p.39)
- • Global economic and political conditions beyond company control(p.53)
- • Financial instability in other countries may increase Indian market volatility(p.53)
- • Russia-Ukraine war and sanctions creating global economic disturbances(p.54)
- • Trade war risks between large economies affecting Indian economy(p.53)
- • Adverse sovereign debt rating revision could impact financing ability(p.54)
- • Natural disasters and terrorist attacks could adversely affect operations(p.54)
- • Highly fragmented and unorganized logistics industry with numerous small/medium competitors(p.135)
- • Intense competition from both domestic and international players on pricing and service quality(p.135)
- • India's merchandise exports fell from FY23 to FY24 impacting domestic logistics demand(p.118)
- • Last-mile delivery costs comprise 53% of shipping costs, creating margin pressure(p.117)
- • Complex regulatory compliance requirements across multiple jurisdictions and international laws(p.138)
- • Dependence on global trade patterns and international maritime regulations(p.138)
- • Currency fluctuation risks with 60.77% revenue from exports in FY24(p.128)
- • Volatile shipping rates and freight market cycles(p.223)
- • Revenue decline in core freight business(p.222)
- • Regulatory and tax uncertainties(p.233)
- • Credit risk from customer defaults(p.233)
- • Post-pandemic demand normalization(p.224)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Jaidev Menon Parath | Promoter | 34.84% | — |
| Karthika Menon | Promoter | 29.09% | — |
| Miriyala Shekhar | Promoter | 13.26% | — |
| Pranav Jaidev | Promoter | 8.02% | — |
| Navaneeth Jaidev | Promoter | 0.98% | — |
| Jaidev Menon Parath | Promoter | 34.84% | — |
| Karthika Menon | Promoter | 29.09% | — |
| Miriyala Shekhar | Promoter | 13.26% | — |
| Pranav Jaidev | Promoter | 8.02% | — |
| Navneeth Jaidev | Promoter | 0.98% | — |
| Kedar Jaidev | Promoter Group | 0.98% | — |
| Jaidev Menon Parath | Promoter | 34.84% | — |
| Karthika Menon | Promoter | 29.09% | — |
| Miriyala Shekhar | Promoter | 13.26% | — |
| Pranav Jaidev | Promoter | — | — |
| Navaneeth Jaidev | Promoter | — | — |
| Jaidev Parath Menon | Promoter | 34.84% | — |
| Karthika Menon | Promoter | 29.09% | — |
| Miriyala Shekhar | Promoter | 13.26% | — |
| Pranav Jaidev | Promoter & Chief Operating Officer (COO) | 8.02% | — |
| Navaneeth Jaidev | Promoter & Chief Technology Officer (CTO) | 0.98% | — |
| Jaidev Menon Parath | Promoter Selling Shareholder | 59,91,500 | — |
| Karthika Menon | Promoter Selling Shareholder | 50,02,500 | — |
| Miriyala Shekhar | Promoter Selling Shareholder | 22,80,832 | — |
| Pranav Jaidev | Promoter Selling Shareholder | 13,80,000 | — |
| Rajeev Menon | Selling Shareholder | 8,05,000 | — |
| Satarla Kishore Reddy | Selling Shareholder | 1,68,667 | — |
| Jaidev Menon Parath | Promoter Selling Shareholder | — | — |
| Miriyala Shekhar | Promoter Selling Shareholder | — | — |
| Pranav Jaidev | Promoter Selling Shareholder | — | — |
Leadership
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.