Gconnect Logitech & Supply Chain
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 26 Mar 2024 – 28 Mar 2024
- Listing date
- 03 Apr 2024
- Face value
- ₹10 per share
- Issue price
- ₹40 per share
- Lot size
- 3,000 shares
- Total issue size
- ₹5.60 Cr
- Market cap at offer price
- ₹14.88 Cr
- Promoter holding
- 76.76% → 47.85% pre-issue → post-issue
- ISIN
- INE0QHY01011
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Fedex Securities Pvt.Ltd.
- Registered office
- Shop No.6, Sadguru Complex, Nari Chowkadina, Gujarat
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 | 75,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹40
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,20,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,40,000 |
| S-HNI (max) | 8 | 24,000 | ₹9,60,000 |
| B-HNI (min) | 9 | 27,000 | ₹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 |
|---|---|---|
| EPS (₹) | 26.64 | 1.23 |
| P/E (×) | 1.50 | 32.52 |
| Price to book (×) | 2.33 | — |
| Market cap | — | ₹14.88 Cr |
Key performance indicators
- Return on net worth
- 5.73%
- ROCE
- 7.67%
- PAT margin
- 11.22%
- NAV per share
- ₹17.17
- Price to book
- 2.33
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Gconnect Logitech & Supply Chain
Gconnect Logitech and Supply Chain Limited was incorporated on July 20, 2022, and subsequently acquired the business of M/s Prithvi Enterprise (a sole proprietorship) in March 2023. The company operates in the surface logistics and transportation sector, offering bulk load, Full Truck Load (FTL), and dedicated load services. It primarily serves transport contractors and industrial customers requiring the movement of goods within India. The company operates on an asset-light model, relying on third-party truck owners rather than owning its own vehicle fleet. The business was previously operated as a sole proprietorship by its promoter Mr. Jigar Vinodbhai Sheth and has shown growth in recent periods.
Company Analysis
from RHPGconnect Logitech and Supply Chain Limited provides surface logistics and goods transportation services, primarily in Gujarat, serving both logistics companies and direct customers across India.
Gconnect Logitech and Supply Chain Limited was incorporated on July 20, 2022, and subsequently acquired the business of M/s Prithvi Enterprise (a sole proprietorship) in March 2023. The company operates in the surface logistics and transportation sector, offering bulk load, Full Truck Load (FTL), and dedicated load services. It primarily serves transport contractors and industrial customers requiring the movement of goods within India. The company operates on an asset-light model, relying on third-party truck owners rather than owning its own vehicle fleet. The business was previously operated as a sole proprietorship by its promoter Mr. Jigar Vinodbhai Sheth and has shown growth in recent periods.
Objects of the Issue
- Purchase of Vehicles and Body Building ₹409.51 Lakhs p.25
- Finance the Website Development and App Designing ₹48.88 Lakhs p.25
- General Corporate Purpose ₹46.01 Lakhs p.26
- Purchase of Vehicles and Body Building ₹409.51 lakhs p.88
- Finance the Website Development and App Designing ₹48.88 lakhs p.90
- General Corporate Purpose ₹46.01 lakhs p.90
- —
Issue Structure
- Total Issue
- ₹560.40 Lakhs
- Fresh Issue
- 14,01,000 Equity Shares of face value of ₹10.00 each at issue price of ₹40 per share aggregating to ₹560.40 Lakhs
- Offer for Sale
- Not Applicable (entire issue constitutes fresh issue)
- Price Band
- Fixed price of ₹40 per Equity Share (100% Fixed Price Issue)
- Lot Size
- Application Lot: 3000 Equity Shares and in multiples thereof
- Face Value
- ₹10.00 per Equity Share
Business Model
The company generates revenue from providing surface logistics services including bulk load, Full Truck Load (FTL) service, and dedicated load services to both other logistics companies and direct customers. It operates on an asset-light model, utilizing third-party transportation companies and truck owners to fulfill customer requirements rather than maintaining its own fleet.
Business Segments
SWOT Analysis
- • Established business with growth trajectory from sole proprietorship acquisition(p.30)
- • Growing revenue base in expanding Indian logistics sector(p.25)
- • Experienced promoters with 12+ years in logistics industry(p.119)
- • Well-defined organizational structure with empowered management(p.124)
- • Longstanding and diverse customer base across multiple industries(p.124)
- • Strong existing supplier relationships with fleet owners(p.124)
- • Asset light business model minimizing capital requirements(p.125)
- • Promoter long-term industry experience enabling strong customer relationships(p.126)
- • Direct customer engagement and rapid response capability(p.126)
- • Established market presence supporting business acquisition(p.126)
- • Service quality as effective marketing differentiator(p.126)
- • Cost-effective integrated service offerings providing competitive advantage(p.127)
- • Limited operating history as a company post-acquisition(p.30)
- • Heavy dependence on third-party carriers and transportation companies(p.32)
- • Extreme customer concentration with top 1 customer representing over 20% of revenues(p.33)
- • High vendor concentration with top 10 vendors representing ~80% of purchases(p.34)
- • No insurance coverage in place for business risks(p.36)
- • Corporate logo not registered as trademark(p.34)
- • History of delayed statutory payments including GST(p.40)
- • Non-compliance with required enrolment certificate under state regulations(p.39)
- • Significant litigation involving promoters(p.35)
- • Negative operating cash flows in recent periods(p.33)
- • High concentration among top 10 customers (97.48% of revenue)(p.124)
- • High dependence on top fleet suppliers (79.78% of revenue for H1 FY24)(p.124)
- • Very limited customer base (approximately 24 customers)(p.124)
- • No formal contracts with customers(p.122)
- • Substantially smaller capital base and resources versus competitors(p.127)
- • No insurance policy currently in place despite operational hazards(p.128)
- • Zero debt capacity to absorb operational shocks or investment needs(p.135)
- • Very small employee base limiting operational scale(p.127)
- • Lease-dependent office infrastructure with limited 5-year tenure(p.128)
- • Expansion in India's growing e-commerce and logistics sector(p.25)
- • Growth in logistics workforce and industry scale(p.25)
- • Diversification through acquisition of new logistics businesses(p.31)
- • Capital investment in vehicle fleet to reduce dependence on third-party carriers(p.25)
- • Expansion of service offerings including LTL and fleet management services(p.125)
- • Purchase of owned vehicles to reduce outsourcing dependence(p.125)
- • Development of proprietary logistics operating system with technology stack(p.125)
- • Building tech-based listing platform for fleet owners(p.125)
- • Growth in India's logistics sector projected at 10-12% CAGR(p.109)
- • E-commerce logistics market expected to surpass 10 billion parcels by FY28(p.118)
- • Geographic expansion into new territories(p.126)
- • Scaling through new customer development(p.126)
- • Customer relationship deepening to unlock additional service needs(p.126)
- • Mergers and acquisitions for business growth and expansion(p.134)
- • Intense competition from both organized and unorganized logistics providers(p.32)
- • Customer outsourcing decisions and market downturns affecting demand(p.31)
- • Transportation strikes and work stoppages affecting service delivery(p.32)
- • Natural disasters and epidemics disrupting operations(p.43)
- • Rising inflation and inability to pass costs to customers(p.43)
- • Fuel, labor and transportation cost volatility beyond company control(p.32)
- • Regulatory changes including new labor codes affecting operating costs(p.42)
- • Slowdown in Indian economic growth affecting logistics demand(p.44)
- • Seasonality in customer demand affecting revenue consistency(p.40)
- • Highly fragmented and competitive logistics industry with 1,000+ participants(p.109)
- • Non-payment risk under 'To Pay' payment option(p.123)
- • Dependence on vehicle availability from outsourced fleet owners during peak demand(p.125)
- • Operations limited to Gujarat state(p.123)
- • Regulatory risks including national permits and food safety compliance requirements(p.125)
- • No entry barriers enabling intense competition from new players(p.126)
- • Highly fragmented and unorganized industry structure(p.126)
- • Inherent transportation industry operational hazards(p.128)
- • Dependence on third-party fleet vendors for vehicle supply(p.128)
- • Regulatory risk from Motor Vehicles Act and Carriage by Road Act(p.129)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Jigar Vinodbhai Sheth | Promoter | 51.03% | 31.80% |
| Mr. Vinod Venilal Sheth | Promoter | 25.74% | 16.04% |
| Jigar Vinodbhai Sheth | Promoter | 51.03% | 31.81% |
| Vinod Venilal Sheth | Promoter | 25.74% | 16.04% |
| Jigar Vinodbhai Sheth | Promoter | 51.03% | 31.80% |
| Vinod Venilal Sheth | Promoter | 25.74% | — |
| Jigar Vinodbhai Sheth | Promoter | — | — |
| Mayurdhavajsinh Pratapsinh Gohil | Promoter | — | — |
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.