Kaushalya Logistics IPO envisages to raise ₹36.60 crores. The IPO opens for subscription on 29th December 2023 and will close on 3rd January 2024.The company is engaged in logistics services, e-commerce platform, realty business.

About Kaushalya Logistics:

• Company is into business of providing Clearing and Forwarding services to one of the leading cement company in India
• It is also engaged in the selling of electronic and white good products on online e-commerce platform. It has started this vesical recently in 2022.
• The Company has also ventured into the business of renting of commercial properties during the FY 2022-23.
• In 2010 the business of providing logistic support started with 4 warehouses and was expanded year on year and currently the company is maintaining 70 warehouses belonging to Dalmia Cement Bharat Limited in the state of Bihar, Tamil Nadu and Kerala among other operating states in India. 

Financials: Kaushalya Logistics IPO

Anchors: Kaushalya Logistics IPO

Kaushalya Logistics IPO: Salient Points

• The promoters current shareholding shall stand diluted to 72.98%.
• The Net Proceeds are proposed to be utilized in the manner set forth below:

• Its major activity is to provide customized comprehensive transport, forwarding, comprehensive warehousing solutions, invocing and door to door delivery solutions. Company generates the Invoices and challans on the ERP system of the customers and arranges the transport for delivery to the distributors location through third party transport operators.offer comprehensive warehousing solutions. Currently the Company is maintaining 70 warehouses belonging to Dalmia Cement (Bharat) Limited in the state of Uttar Pradesh, Bihar, Tamil Nadu and Kerala among other operating states in India. The warehouses which the Company is maintaining on behalf of Dalmia Cement, are all leased by Dalmia Cement (Bharat) Limited in their own name. These dervices can be depicted below

• The company has also ventured out in commercial real estate sector by owning and renting out commercial shops in Udaipur, which constitutes the third vertical of its business operations. This is more to lend stability to its operations and provide steady income flow.
• The Company has operations in Tamil Nadu, Kerala, Karnataka, Bihar and Rajasthan.
• Company has established good name in the cement industry and is in discussions with other cement companies.
• Integrated Logistic service provider in the cement industry and is looking to further extend its business into other verticals within Logistics like Warehousing, Transportation, etc.
• They have also entered into tie up with a major online e-commerce platform as sellers of white good and electronics since January 2022. In online business, company sells products purchased from the leading brands only. They have made good progress in this.
• Kaushalya Logistics IPO is coming at a PE ratio of 19x(fy23 earnings) and 16x (fy24 annualized earnings)
• I intend to apply in Kaushalya Logistics IPO subject to availability of funds. It has exhibited good growth in the past and should grow at the similar rates in coming years too.
• GMP as reported on social media has been Rs. 55.
• Khandwala Securities Limited is the Lead Manager and has a reasonable but limited record. They have managed SME IPO of Vishnusurya Projects and Infra Limited.
• SME IPO are more risky and volatile than mainboard IPOs.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.