Reetech International Cargo and Courier SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 27 Sep 2022 – 29 Sep 2022
- Listing date
- 10 Oct 2022
- Face value
- ₹10 per share
- Issue price
- ₹105 per share
- Lot size
- 1,200 shares
- Total issue size
- ₹11.71 Cr
- Market cap at offer price
- ₹44.39 Cr
- Promoter holding
- 99.99% → 73.62% pre-issue → post-issue
- ISIN
- INE0MKO01015
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Gretex Corporate Services Ltd.
- Registered office
- Sai Kunj\"\", Civil Lines, Chhattisgarh
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 | 0 | — | — |
| Market maker | 56,400 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹105
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,26,000 |
| S-HNI (min) | 2 | 2,400 | ₹2,52,000 |
| S-HNI (max) | 7 | 8,400 | ₹8,82,000 |
| B-HNI (min) | 8 | 9,600 | ₹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.
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 (₹) | 11.50 | — |
| P/E (×) | 9.13 | — |
| Market cap | — | ₹44.39 Cr |
Key performance indicators
- Return on net worth
- 52.09%
- ROCE
- 72.81%
- PAT margin
- 3.87%
- NAV per share
- ₹154.51
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Reetech International Cargo and Courier SME
Reetech International Cargo and Courier Limited was incorporated in December 2008 as M R Agriculture Private Limited, initially engaged in agriculture goods trading (rice milling, dal processing). In 2020, the promoters identified an opportunity in coal trading and commenced coal business. The company was renamed to Reetech International Cargo and Courier Private Limited in 2021 and converted to a public company in 2022. Based in Raipur, Chhattisgarh, the company trades coal sourced from Indonesia, South Africa, Australia, and India through international ports (Gangavaram, Vizag) and supplies to power plants, steel mills, and rolling industries. Revenue from operations grew from ₹18.99 Lakhs in FY2020 to ₹11,373.97 Lakhs in FY2022. The company provides end-to-end logistics solutions and offers flexibility in payment terms to customers.
Company Analysis
from RHPReetech International Cargo and Courier Limited is a coal trader importing and supplying coal from international and domestic sources to power, steel, and industrial sectors across India.
Reetech International Cargo and Courier Limited was incorporated in December 2008 as M R Agriculture Private Limited, initially engaged in agriculture goods trading (rice milling, dal processing). In 2020, the promoters identified an opportunity in coal trading and commenced coal business. The company was renamed to Reetech International Cargo and Courier Private Limited in 2021 and converted to a public company in 2022. Based in Raipur, Chhattisgarh, the company trades coal sourced from Indonesia, South Africa, Australia, and India through international ports (Gangavaram, Vizag) and supplies to power plants, steel mills, and rolling industries. Revenue from operations grew from ₹18.99 Lakhs in FY2020 to ₹11,373.97 Lakhs in FY2022. The company provides end-to-end logistics solutions and offers flexibility in payment terms to customers.
Objects of the Issue
- Working Capital Requirements ₹455.00 Lakhs p.23
- General Corporate Purpose ₹150.94 Lakhs p.23
- Working Capital Requirements ₹455.00 lakhs (out of total estimated requirement of ₹551.45 lakhs) p.78
- General Corporate Purposes ₹150.94 lakhs p.79
- Not explicitly stated in this part of the document
- General corporate purposes
Issue Structure
- Total Issue
- ₹1,170.54 Lakhs
- Fresh Issue
- ₹627.48 Lakhs (5,97,600 Equity Shares of ₹10.00 each)
- Offer for Sale
- ₹543.06 Lakhs (5,17,200 Equity Shares of ₹10.00 each by Selling Shareholders)
- Price Band
- ₹105.00 per Equity Share (including premium of ₹95.00)
- Lot Size
- 1,200 Equity Shares and in multiples of 1,200 thereafter
- Face Value
- ₹10.00 per Equity Share
Business Model
The company earns revenue by trading coal – importing coal from international markets (South African, Indonesian, US coal) and domestic e-auctions (Coal India Limited subsidiaries), then selling to industrial customers (power plants, steel mills, rolling industries) on a purchase order basis. Transportation is facilitated through third-party road and railway logistics. The company does not own transportation fleet but coordinates delivery to customer sites.
Business Segments
SWOT Analysis
- • Rapid market recognition as trusted coal trader in Chhattisgarh despite recent entry(p.22)
- • Diversified product portfolio across multiple coal origins and quality grades(p.22)
- • Strong revenue growth trajectory with 11,689.10 lakhs total income in FY2022 vs 1,842.41 lakhs in FY2021(p.48)
- • Commitment to quality and reliability recognized by customers(p.23)
- • Multi-port operational presence and end-to-end logistics capabilities(p.22)
- • Experienced team with industry expertise in coal trading(p.101)
- • Strong track record and customer relationships in coal trading(p.101)
- • Repeat business indicating strong customer confidence(p.101)
- • Geographic advantage through location in coal-rich region(p.101)
- • Diversified coal sourcing from multiple origins and grades(p.100)
- • Flexible multi-modal transportation capabilities(p.100)
- • Rapid market establishment as recognized coal supplier(p.168)
- • Diversified coal product portfolio from multiple origins(p.168)
- • Wide geographic operational reach with extensive customer network(p.168)
- • Multi-modal logistics capability(p.168)
- • Strong financial performance growth(p.113)
- • Diversified customer base across multiple industrial sectors(p.168)
- • Heavy dependence on Promoter for day-to-day execution and strategic direction(p.30)
- • Registered office leased from promoter on short 3-year term with renewal risk(p.30)
- • Over 96% of FY2022 revenue concentrated in top 10 customers(p.31)
- • No long-term contracts with customers; entirely purchase order dependent(p.30)
- • Very recent entry into coal trading (FY2020-21) with no prior industry experience by promoters(p.30)
- • Significant past statutory compliance deficiencies and errors in corporate filings(p.33)
- • Outstanding tax litigation against promoters (₹13.37 lakhs) and group companies (₹1,025.63 lakhs)(p.24)
- • Capital-intensive business requiring significant working capital with negative investing cash flow in FY2022(p.50)
- • Limited scale and established presence relative to larger competitors(p.102)
- • High wage and operational costs affecting profitability(p.102)
- • Infrastructure bottlenecks in coal evacuation from certain regions(p.102)
- • Dependence on single commodity (coal) with no diversification(p.101)
- • Very recent business establishment with limited track record(p.168)
- • High dependence on coal trading for primary revenue(p.169)
- • Minimal fixed asset base and property holdings(p.149)
- • Limited cash reserves relative to operations(p.149)
- • Associate company losses in prior period(p.150)
- • Significant dependence on few customers(p.179)
- • Promoter tax litigation exposure(p.183)
- • Group company significant tax demands(p.185)
- • Minimal fixed assets and depreciation(p.174)
- • Limited operational scale and recent expansion(p.187)
- • Strong coal production growth and supply surplus in India supporting demand(p.22)
- • Seasonal summer demand surge with increased electricity consumption driving coal demand(p.31)
- • Potential to diversify beyond coal into new products and business models(p.36)
- • Opportunity to expand customer base and reduce reliance on top 10 customers(p.31)
- • Growing organized sector presence with few organized players creating entry advantage(p.31)
- • Government initiatives to increase domestic coal production and reduce imports(p.97)
- • Growing Indian economy and electricity demand supporting coal markets(p.102)
- • Expansion into additional mineral trading segments(p.101)
- • Increased electrification and vehicle adoption driving power sector growth(p.102)
- • Strong domestic coal production growth creating supply opportunities(p.94)
- • Expansion through acquisition of coal from multiple geographic sources(p.169)
- • Growth in Indian coal procurement through government auctions(p.169)
- • End-to-end logistics solutions value addition(p.169)
- • Operations from multiple strategic port locations(p.169)
- • Rapid pandemic recovery driving sales growth(p.174)
- • Strong EBITDA margin expansion(p.173)
- • Improved inventory turnover efficiency(p.177)
- • Coal trading business expansion in India(p.179)
- • Net worth and cash generation growth(p.192)
- • Commodity price volatility and supply fluctuations beyond company control(p.28)
- • Highly competitive market with organized and unorganized competitors(p.31)
- • Dependence on third-party transportation with no owned fleet creating delivery risk(p.35)
- • Severe weather and natural disasters could disrupt operations(p.35)
- • Power supply disruptions and dependency on state government electricity(p.35)
- • COVID-19 pandemic continues to pose material adverse effects(p.31)
- • Regulatory changes in mining/coal sector could disrupt operations(p.42)
- • Global economic and political volatility affecting Indian economy and business(p.44)
- • Unethical industry practices by competitors affecting emerging company performance(p.42)
- • Quality constraints in indigenous coal limiting competitiveness(p.102)
- • Risk of renewable energy adoption reducing long-term coal demand(p.102)
- • Land acquisition constraints and regulatory barriers to infrastructure development(p.102)
- • Global economic slowdown affecting coal demand and prices(p.88)
- • Competition from larger established coal traders with superior resources(p.104)
- • COVID-19 pandemic impact on business operations(p.169)
- • Dependency on general economic conditions in India and abroad(p.169)
- • Currency volatility affecting import-based business(p.171)
- • Regulatory and infrastructure limitations(p.169)
- • Natural disasters and calamities risk(p.169)
- • Commodity price volatility affecting margins(p.169)
- • Global commodity price volatility exposure(p.179)
- • Indian economic slowdown risk(p.179)
- • Intensifying competition from organized and unorganized players(p.179)
- • Input cost inflation and margin compression risk(p.178)
- • Interest rate and credit risk exposure(p.178)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Mahendra Ahuja | Promoter | 42.45% | 36.51% |
| Ms. Roma Ahuja | Promoter | 57.54% | 49.35% |
| Mr. Mahendra Ahuja | Promoter | 42.52% | 31.29% |
| Ms. Roma Ahuja | Promoter | 57.47% | 42.33% |
| Mahendra Ahuja | Promoter | 42.52% | — |
| Roma Ahuja | Promoter | 57.47% | — |
| Mr. Mahendra Ahuja | Promoter | — | — |
| Ms. Roma Ahuja | Promoter | — | — |
| Mahendra Ahuja | Promoter | — | — |
| Roma Ahuja | 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.