Destiny Logistics & Infra SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 30 Sep 2021 – 05 Oct 2021
- Listing date
- 13 Oct 2021
- Face value
- ₹10 per share
- Issue price
- ₹20 per share
- Lot size
- 6,000 shares
- Total issue size
- ₹5.39 Cr
- Market cap at offer price
- ₹15.39 Cr
- Promoter holding
- 99.72% → 64.79% pre-issue → post-issue
- ISIN
- INE0IGO01011
- Registrar
- Cameo Corporate Services Ltd.
- Lead managers
- Finshore Management Services Ltd.
- Registered office
- 375, Dakshindari Road, West Bengal
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 | 1,38,000 | — | — |
Application size
Minimum 6,000 shares per lot, in multiples, at ₹20
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 6,000 | ₹1,20,000 |
| S-HNI (min) | 2 | 12,000 | ₹2,40,000 |
| S-HNI (max) | 8 | 48,000 | ₹9,60,000 |
| B-HNI (min) | 9 | 54,000 | ₹10,80,000 |
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
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹15.39 Cr |
About Destiny Logistics & Infra SME
Destiny Logistics & Infra Limited, incorporated in 2011 and renamed in September 2021, operates in the logistics and infrastructure sectors. Since incorporation, the company has been in the business of logistics involving land-based transportation through third-party service providers, primarily serving the domestic market with a focus on West Bengal. The company procures third-party fleets both contractually and in the spot market, offering transport management expertise and arranging for third-party operators to haul freight. Services include complete packaging, loading, transporting, unloading and unpacking of items. This asset-light business model allows for scalability and flexibility to develop customized logistic solutions across diverse sectors. The company also provides end-to-end safe mobility and delivery of items. Recently, the company has diversified into infrastructure development activity.
Company Analysis
from RHPDestiny Logistics & Infra Limited provides land-based third-party logistics services involving transportation, loading, and delivery of goods in India, and has recently diversified into infrastructure development.
Destiny Logistics & Infra Limited, incorporated in 2011 and renamed in September 2021, operates in the logistics and infrastructure sectors. Since incorporation, the company has been in the business of logistics involving land-based transportation through third-party service providers, primarily serving the domestic market with a focus on West Bengal. The company procures third-party fleets both contractually and in the spot market, offering transport management expertise and arranging for third-party operators to haul freight. Services include complete packaging, loading, transporting, unloading and unpacking of items. This asset-light business model allows for scalability and flexibility to develop customized logistic solutions across diverse sectors. The company also provides end-to-end safe mobility and delivery of items. Recently, the company has diversified into infrastructure development activity.
Objects of the Issue
- To Meet working capital requirement ₹440.00 Lakhs p.15
- Public issue expenses ₹38.80 Lakhs p.15
- General corporate purpose ₹60.00 Lakhs p.15
- To meet the working capital requirements of the company ₹440.00 Lakhs p.53
- To meet the Issue Expenses ₹38.80 Lakhs p.53
- General Corporate Purposes ₹60.00 Lakhs p.53
- General corporate purposes
Issue Structure
- Total Issue
- ₹538.80 Lakhs
- Fresh Issue
- 26,94,000 Equity Shares of ₹10/- each at ₹20/- per share, aggregating to ₹538.80 Lakhs
- Price Band
- ₹20/- per Equity Share (Fixed Price Issue)
- Lot Size
- 6,000 Equity Shares
- Face Value
- ₹10/- per Equity Share
Business Model
The company earns revenue through land-based transportation services by procuring third-party fleets (contractually and on spot market basis) and providing transport management expertise to customers. Services include packaging, loading, transporting, unloading, and unpacking. The asset-light model allows for service scalability and customized solutions.
Business Segments
SWOT Analysis
- • Asset-light business model enabling scalability and flexibility(p.14)
- • Established customer and supplier relationships from promoter experience(p.21)
- • Revenue growth trajectory(p.15)
- • Improved profitability(p.15)
- • Established track record of over 10 years with organizational stability(p.65)
- • Strong customer relationships and repeat business generation(p.65)
- • Experienced and qualified management team(p.65)
- • Asset-light business model enabling scalability and flexibility(p.64)
- • Entry into high-value infrastructure contracts(p.64)
- • Promoter involvement in litigation with potential financial impact(p.17)
- • Significant contingent liabilities in associate company DSSL(p.18)
- • Ongoing GST and income tax enquiries against promoter firms(p.18)
- • Negative operating cash flow in recent fiscal year(p.19)
- • Dependence on few high-value clients(p.19)
- • High level of indebtedness and debt dependency(p.15)
- • Unregistered office premises creating operational risk(p.20)
- • Lack of trademark registration protection(p.20)
- • Limited geographical reach; operations concentrated in West Bengal(p.64)
- • Heavy reliance on third-party fleet providers(p.64)
- • High working capital intensity requiring significant capital deployment(p.52)
- • Insufficient market penetration and reach(p.66)
- • Dependence on limited number of customers for significant portion of revenues(p.115)
- • High leverage and unsecured borrowing from related parties(p.112)
- • Directors involved in criminal and tax litigation(p.120)
- • Significant working capital gap and negative operating cash flow(p.100)
- • Outstanding litigation against promoter involving fraud allegations(p.120)
- • Large and growing Indian logistics market(p.14)
- • Government infrastructure investment and road sector growth(p.14)
- • Post-COVID logistics demand uptick(p.14)
- • Diversification into infrastructure development(p.14)
- • Outsourcing trend in supply chain management(p.20)
- • Capitalize on growth of third-party logistics industry in India(p.65)
- • Expand geographical presence and supply chain network(p.65)
- • Diversify into value-added logistics services(p.66)
- • Government thrust driving growth in logistics and infrastructure sectors(p.66)
- • Strong e-commerce sector growth driving logistics demand(p.62)
- • Revenue growth acceleration from 49% in FY21(p.116)
- • Acquisition of related party Dynamic Services providing scale and market access(p.115)
- • Intense competition from organized and unorganized logistics players(p.19)
- • Dependence on third-party transport providers and cost vulnerability(p.19)
- • Payment delays and defaults from customers(p.19)
- • Road network disruptions and transportation risks(p.20)
- • COVID-19 pandemic uncertainty and economic impact(p.20)
- • Economic slowdown and reduced client spending(p.20)
- • Reversal of logistics outsourcing trend(p.20)
- • Changes in government regulations(p.27)
- • Intense competition from both organized and unorganized players(p.66)
- • No entry barriers enabling competition from new entrants(p.66)
- • Competitors have larger capital base and broader service offerings(p.66)
- • Rising labor wages constraining margins(p.66)
- • Sensitivity to changes in government policies(p.66)
- • Margin compression risk in future periods(p.66)
- • COVID-19 pandemic impact on business operations(p.105)
- • Rapid technological advancement and inability to keep pace(p.115)
- • Increased competition in logistics and transportation sector(p.115)
- • Changes in laws and regulations affecting sector operations(p.115)
- • Failure to comply with financial and restrictive covenants in financing arrangements(p.115)
- • Political instability or government changes in India and operational states(p.115)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Jugal Kishore Bhagat | Promoter | 75.83% | 49.20% |
| Mrs. Rekha Bhagat | Promoter | 23.89% | 15.51% |
| Mr. Jugal Kishore Bhagat | Promoter | 75.83% | 49.27% |
| Mrs. Rekha Bhagat | Promoter | 23.89% | 15.52% |
| Jugal Kishore Bhagat | Promoter | 54.00% | — |
| Rekha Bhagat | Promoter | 43.20% | — |
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.