Zeal Global Services
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 28 Jul 2023 – 01 Aug 2023
- Listing date
- 09 Aug 2023
- Face value
- ₹10 per share
- Issue price
- ₹103 per share
- Lot size
- 1,200 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹36.46 Cr
- Market cap at offer price
- ₹137 Cr
- Promoter holding
- 100.00% → 73.40% pre-issue → post-issue
- ISIN
- INE0PPS01018
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Expert Global Consultants Pvt.Ltd.
- Registered office
- A-261/262, Third Floor, Street No.6, Mahipalpur Extension, New Delhi
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 | 1,77,600 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹103
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,23,600 |
| S-HNI (min) | 2 | 2,400 | ₹2,47,200 |
| S-HNI (max) | 8 | 9,600 | ₹9,88,800 |
| B-HNI (min) | 9 | 10,800 | ₹11,12,400 |
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 (₹) | 8.46 | — |
| P/E (×) | 12.17 | — |
| Market cap | — | ₹137 Cr |
Key performance indicators
- Return on net worth
- 56.56%
- ROCE
- 58.00%
- Debt / equity
- 0.15
- PAT margin
- 4.33%
- NAV per share
- ₹13.07
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Zeal Global Services
Zeal Global Services Limited, incorporated in February 2014 and converted to a public company in April 2023, operates as a GSSA representing multiple airlines from different countries. The company facilitates the transfer and shipment of goods by air cargo through represented/contracted airlines, and also provides passenger carrier services, including introducing Azerbaijan Airlines to India. With 9 years of experience in the air cargo industry, the company serves offline airlines (those without direct offices in India) seeking cost-effective cargo outsourcing solutions. The company has a diversified product portfolio including air carrier services and passenger carrier services, generating revenue from IATA agents and direct airline partnerships.
Company Analysis
from RHPZeal Global Services Limited is a General Sales and Service Agent (GSSA) for airlines providing air cargo and passenger carrier services across India and internationally.
Zeal Global Services Limited, incorporated in February 2014 and converted to a public company in April 2023, operates as a GSSA representing multiple airlines from different countries. The company facilitates the transfer and shipment of goods by air cargo through represented/contracted airlines, and also provides passenger carrier services, including introducing Azerbaijan Airlines to India. With 9 years of experience in the air cargo industry, the company serves offline airlines (those without direct offices in India) seeking cost-effective cargo outsourcing solutions. The company has a diversified product portfolio including air carrier services and passenger carrier services, generating revenue from IATA agents and direct airline partnerships.
Objects of the Issue
- Working capital requirement ₹1,200.00 Lakhs p.21
- Investments in subsidiaries for business expansion ₹1,000.00 Lakhs p.21
- Part repayment of debt ₹432.00 Lakhs p.21
- General corporate purposes ₹712.20 Lakhs p.21
- To meet issue expenses ₹302.00 Lakhs p.21
- Working capital requirement ₹1,200.00 lakhs p.70
- Investments in subsidiaries for business expansion ₹1,000.00 lakhs p.70
- Part repayment of debt ₹432.00 lakhs p.70
- General corporate purposes ₹712.20 lakhs p.70
- To meet issue expenses ₹302.00 lakhs p.70
- General corporate purposes p.201
Issue Structure
- Total Issue
- ₹3,646.20 Lakhs
- Fresh Issue
- ₹3,646.20 Lakhs (35,40,000 Equity Shares)
- Offer for Sale
- Nil
- Price Band
- ₹103/- per Equity Share
- Lot Size
- 1,200 Equity Shares and in multiples of 1,200 thereafter
- Face Value
- ₹10/- per Equity Share
Business Model
The company earns revenue primarily through air cargo services by representing multiple airlines and facilitating cargo transportation, and passenger carrier services. Revenue is generated through relationships with IATA agents and direct contracts with airlines. The company operates as a sales partner for airlines in offline regions, providing expertise in cargo logistics and network coverage.
Business Segments
SWOT Analysis
- • 9 years established presence in air cargo GSSA industry with comprehensive expertise(p.19)
- • Diversified product portfolio spanning air carrier and passenger carrier services(p.19)
- • Growing Indian air freight market with projected 5.65% CAGR through 2028(p.20)
- • Indian logistics sector benefits from government infrastructure initiatives and policy reforms(p.19)
- • India positioned to benefit from shift of manufacturing away from China(p.20)
- • Scalable business model with proven ability to attract multiple airlines(p.94)
- • Established relationships with significant proportion of India's IATA agents(p.94)
- • Experienced management with strong domain expertise in air cargo(p.94)
- • Specialized technical capability in handling complex cargo(p.95)
- • Revenue growth demonstrating market traction(p.92)
- • Plug and Play business model enabling rapid expansion with new airlines(p.94)
- • Experienced promoter team with ~18 years combined air cargo expertise(p.106)
- • Established GSSA partnerships with multiple international airlines(p.106)
- • Strategic investment in joint venture to strengthen market position(p.106)
- • Customized client solutions across multiple industries(p.106)
- • Presence in major Indian logistics hubs(p.106)
- • High concentration risk: top 10 customers represent 41.59% of revenue(p.27)
- • Dependent on few airlines; loss of any major airline would severely impact business(p.30)
- • No long-term agreements with IATA Agents or third-party vendors(p.28)
- • Rented office premises without long-term ownership(p.29)
- • History of regulatory non-compliance including delayed EPF and GST payments(p.31)
- • Pending tax demand of ₹226.56 lakhs under Section 156 of Income Tax Act(p.22)
- • Negative cash flows from operations in recent periods(p.34)
- • Geographic concentration: operations primarily in Delhi with limited presence(p.33)
- • Absence of long-term formal agreements with key IATA agent customers(p.94)
- • High concentration of revenue in top customers(p.97)
- • High concentration of procurement in top suppliers(p.98)
- • Significant geographic concentration with Delhi accounting for majority of revenue(p.97)
- • Limited insurance coverage relative to operations(p.96)
- • No owned plant, machinery or infrastructure creating operational dependence(p.95)
- • Pending trademark registration creating intellectual property risk(p.98)
- • High short-term borrowings relative to equity(p.138)
- • Significant dependence on air freight services for revenue(p.160)
- • Minimal cash position relative to liabilities(p.138)
- • Income tax litigation with substantial disputed demand outstanding(p.162)
- • Limited working capital with high trade receivables(p.138)
- • Expansion into new geographies within India targeting Chennai, Bangalore, Ahmedabad, Hyderabad(p.30)
- • Global expansion planned in Vietnam, UAE, Thailand, and Azerbaijan through subsidiaries(p.30)
- • Indian logistics industry projected to grow to ₹380 billion by 2025 at 10%-12% CAGR(p.19)
- • Government push to reduce logistics cost from 13-14% to 10% of GDP(p.19)
- • E-commerce growth driving demand for logistics services(p.19)
- • India's position as world's fifth largest economy with aspiration to become $5 trillion economy(p.19)
- • India's air freight market growth trajectory with projected significant expansion(p.88)
- • Government initiatives to reduce logistics costs and develop unified logistics infrastructure(p.88)
- • E-commerce driven growth in air cargo demand(p.87)
- • Geographic expansion opportunity through replication of business model(p.94)
- • Passenger air services emerging as new revenue vertical with early success(p.94)
- • Rising manufacturing sector capacity creating import/export air cargo demand(p.88)
- • India benefiting from China-alternative manufacturing shift(p.88)
- • Expansion through 'Augmented GSSA' strategy across four pillars(p.106)
- • Growth in air cargo industry with international operations network(p.106)
- • Diversification into air passenger services(p.160)
- • Revenue growth trajectory with strong year-on-year performance(p.139)
- • Freight rate pressure from increased cargo capacity and cargo belly space recovery(p.29)
- • Intense competition from organized and unorganized players with greater resources(p.29)
- • Dependency on manpower with risks from strikes, wage demands, and contractual labor regulations(p.28)
- • Regulatory changes affecting GSSA industry in India and overseas(p.42)
- • Currency fluctuations adversely affecting foreign investor returns(p.41)
- • COVID-19 pandemic continuing to disrupt air cargo operations(p.37)
- • Natural calamities and geopolitical risks affecting operations(p.41)
- • Declining global trade affecting air cargo demand(p.20)
- • Indian economic slowdown adversely affecting cargo volumes and company revenues(p.41)
- • Highly fragmented and competitive logistics industry with numerous competitors(p.87)
- • Competition from established international logistics and airline operators(p.98)
- • Dependence on airline partner relationships and their strategic decisions(p.93)
- • Global economic slowdown impacting air cargo demand(p.82)
- • Indian economic growth deceleration reducing domestic logistics demand(p.85)
- • Regulatory changes affecting air cargo operations and GSSA arrangements(p.100)
- • Fluctuation in aviation fuel prices and foreign exchange affecting costs(p.48)
- • Exposure to foreign exchange fluctuation risks(p.161)
- • Customer concentration risk without major customer diversification(p.163)
- • High finance costs from increased borrowings(p.161)
- • Regulatory compliance requirements in foreign exchange management(p.105)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Nipun Anand | Promoter | 76.00% | — |
| Mr. Vishal Sharma | Promoter | 24.00% | — |
| Mr. Nipun Anand | Promoter and Whole Time Director | 76.00% | 55.78% |
| Mr. Vishal Sharma | Promoter and Managing Director | 24.00% | 17.62% |
| Mr. Nipun Anand | Promoter | 76.00% | 55.78% |
| Mr. Vishal Sharma | Promoter | 24.00% | 17.62% |
| Nipun Anand | Promoter | — | — |
| Vishal Sharma | 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.