S J Logistics’ Initial Public Offering (IPO) presents an opportunity for investors to engage with a book-built issue valued at Rs. 48.00 crores. This IPO exclusively comprises a fresh issue of 38.4 lakh shares, introducing an enticing prospect in the market.
Subscription and Timelines Scheduled to open for subscription on December 12, 2023, and conclude on December 14, 2023, the IPO’s allotment is anticipated to be finalized by Friday, December 15, 2023. The listing on NSE SME is earmarked for Tuesday, December 19, 2023.
Pricing and Lot Sizes With a price band of Rs. 121 to Rs. 125 per share, the minimum lot size stands at 1000 shares. Retail investors are required to invest a minimum of Rs. 125,000, while High Net Worth Individuals (HNIs) necessitate a minimum investment of 2 lots, totaling 2,000 shares and amounting to Rs. 250,000.
Key Players Hem Securities Limited functions as the book running lead manager for the S J Logistics IPO, supported by Maashitla Securities Private Limited as the appointed registrar. Hem Finlease holds the pivotal role of the market maker for this promising IPO.
For in-depth insights and detailed information, interested parties are encouraged to refer to the S J Logistics IPO RHP (Red Herring Prospectus). This IPO marks a notable opportunity in the market, promising potential growth and investment prospects for stakeholders.
S J Logistics (India) Limited IPO Details
IPO Timeline and Details The S J Logistics IPO, set between December 12 and December 14, 2023, boasts a face value of Rs. 10 per share. Positioned within a price band of Rs. 121 to Rs. 125 per share, this offering encompasses a lot size of 1000 shares, with a substantial total issue size of 3,840,000 shares, summing up to Rs. 48.00 Cr.
Nature of the Issue Uniquely categorized as a Book Built Issue IPO, the entire issue comprises fresh shares, all of which add up to the aggregate value of Rs. 48.00 Cr. This strategic issuance sets the stage for potential growth and investment opportunities.
Listing and Share Dynamics The listing of the IPO is anticipated at NSE SME, and noteworthy changes in shareholding are expected. Pre-issue, the shareholding stands at 10,643,130 shares, post-issue projecting an increase to 14,483,130 shares. A pivotal portion, amounting to 193,000 shares, is designated for the Market Maker, underscoring the robust nature of this IPO.
Anticipating a Flourishing Future S J Logistics’ IPO emerges as a promising venture, offering investors a chance to engage with a well-structured book built issue that heralds growth potential and aligns with market dynamics. The outlined details provide a comprehensive view, enticing stakeholders to explore this upcoming opportunity in the financial landscape.
| IPO Details | Details |
| IPO Date | December 12, 2023 to December 14, 2023 |
| Face Value | ₹10 per share |
| Price Band | ₹121 to ₹125 per share |
| Lot Size | 1000 Shares |
| Total Issue Size | 3,840,000 shares (aggregating up to ₹48.00 Cr) |
| Fresh Issue | 3,840,000 shares (aggregating up to ₹48.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | NSE SME |
| Share holding pre issue | 10,643,130 |
| Share holding post issue | 14,483,130 |
| Market Maker portion | 193,000 shares |
S J Logistics (India) Limited Timeline (Tentative Schedule)
IPO Opens: Tuesday, December 12, 2023
IPO Closes: Thursday, December 14, 2023
Basis of Allotment: Friday, December 15, 2023
Initiation of Refunds: Monday, December 18, 2023
Credit of Shares to Demat: Monday, December 18, 2023
Listing Date: Tuesday, December 19, 2023
Cut-off Time for UPI Mandate Confirmation: 5 PM on December 14, 2023
The IPO Journey Unfolds S J Logistics IPO’s timeline presents a concise roadmap for investors and stakeholders to engage with this offering. Starting from the IPO opening on December 12, 2023, and concluding on December 14, 2023, stakeholders have a limited window to participate.
Crucial Milestones The allocation process is set to be finalized by December 15, 2023, followed by the initiation of refunds and the seamless credit of shares to Demat accounts on December 18, 2023. Finally, marking an important milestone, the listing date on December 19, 2023, is expected to witness the IPO’s entry into the market.
Seize the Opportunity With a clear and defined timeline, stakeholders are encouraged to adhere to the schedule, ensuring active participation and timely actions to capitalize on the S J Logistics IPO. This structured timeline aims to facilitate a smooth and efficient process for all involved parties, paving the way for a successful IPO entry into the market.
S J Logistics (India) Limited IPO Key Performance Indicator (KPIs)
P/E Ratio (x): 14.14
Return on Equity (ROE): 24.41%
Return on Capital Employed (ROCE): 18.58%
Debt/Equity Ratio: 1.08
Earnings per Share (EPS): Rs 8.84
Return on Net Worth (RoNW): 24.41%
P/E Ratio The Price-to-Earnings (P/E) ratio at 14.14 suggests the market’s valuation of the company relative to its earnings. A lower P/E ratio may indicate undervaluation, while a higher one may signal higher growth expectations.
ROE: The robust Return on Equity at 24.41% showcases the company’s ability to generate profits from shareholders’ equity.
ROCE: With an ROCE of 18.58%, the company efficiently utilizes capital to generate earnings.
Debt Analysis The Debt/Equity ratio of 1.08 signifies a balanced proportion between debt and shareholders’ equity, indicating the company’s reliance on external borrowing.
Earnings and Returns (EPS): Earnings per Share of Rs 8.84 reflects the company’s profitability on a per-share basis.
RoNW: The Return on Net Worth mirrors the ROE at 24.41%, emphasizing the profitability concerning the company’s net worth.
Implications and Considerations These KPIs offer a comprehensive snapshot of S J Logistics’ financial health and operational efficiency. Investors may use these indicators to gauge the company’s performance, financial stability, and growth potential, aiding informed investment decisions in the dynamic market landscape.
Grey Market Premium (GMP) S J Logistics (India) Limited IPO
IPO Market Trends The S J Logistics SME IPO, with a last GMP (Grey Market Premium) of Rs.95 (last updated on December 9th, 2023, at 03:56 PM), coupled with a price band of Rs.125.00, indicates an estimated listing price of Rs. 220 (cap price + today’s GMP). This projection implies an expected percentage gain/loss per share of 76.00%.
Retail Subject to Sauda Additionally, the Retail Subject to Sauda stands at Rs. 72200 for the S J Logistics SME IPO, emphasizing the interest and potential investment from retail investors.
Implications for Investors The anticipated performance, as derived from the GMP and the IPO price band, forecasts a substantial gain at the time of listing. This trend could entice investors, especially retail ones, reflecting strong market sentiment and interest in the IPO.
GMP Range Overview The Grey Market Premium (GMP) for the S J Logistics SME IPO fluctuates within a range. The observed GMP values vary from the lowest at Rs. 0 to the highest recorded at Rs. 95. This dynamic range indicates varying market perceptions and sentiments regarding the IPO.
Daily Price Trends and Expected Listing Price Stay tuned for our regular updates on the daily price trends of the S J Logistics SME IPO’s GMP. These updates will provide insights into the evolving market sentiment and expectations concerning the IPO’s listing price. Considering the highest GMP of Rs. 95, the anticipated listing price remains subject to fluctuations and market dynamics.
Considerations for Investment Investors are advised to assess market dynamics, IPO trends, and their risk appetite before making investment decisions. The projected gains and interest observed in the S J Logistics SME IPO can serve as a reference point for investors evaluating their participation in this offering.
| GMP Date | IPO Price | GMP | Sub2 Sauda Rate | Estimated Listing Price | Last Updated |
| 09-12-2023 | ₹125.00 | ₹95 (Up) | 72200 | ₹220 (76%) | 9-Dec-2023 15:56 |
| 08-12-2023 | ₹125.00 | ₹85 (Up) | 64600 | ₹210 (68%) | 8-Dec-2023 23:24 |
| 07-12-2023 | ₹125.00 | ₹75 (Up) | 57000 | ₹200 (60%) | 7-Dec-2023 23:26 |
| 06-12-2023 | ₹125.00 | ₹50 (Up) | 38000 | ₹175 (40%) | 6-Dec-2023 23:30 |
| 05-12-2023 | NA | ₹40 (No Change) | — | ₹40 | 5-Dec-2023 23:25 |
| 04-12-2023 | NA | ₹40 (Up) | — | ₹40 | 4-Dec-2023 23:28 |
| 03-12-2023 | ₹0 (No Change) | — | ₹ (0%) | 3-Dec-2023 20:32 |
S J Logistics (India) Limited Company Profile
S J Logistics (India) Limited: Logistics and Supply Chain Solutions Pioneer
Established in December 2003, S J Logistics (India) Limited has been a stalwart in providing comprehensive logistics and supply chain solutions. The company specializes in offering a spectrum of services, including freight forwarding, customs clearance, and transportation handling services.
In the fiscal year 2023, S J Logistics processed an impressive tally of 3,100 bills of lading spanning various destinations across continents. These destinations encompass Africa, South America, Australia, Europe, the Gulf, Southeast Asia, Russia, and the United States. Notably, S J Logistics has fostered strategic collaborations with partners in countries such as Ecuador, Brazil, Chile, Peru, the United States, Paraguay, Bolivia, Hong Kong, China, Taiwan, Vietnam, and others, bolstering its prowess in logistics and freight forwarding operations.
With two subsidiary companies, namely SJA Logisol India Private Limited (SJALIPL) and S. J. L. Group (Singapore) Pte. Ltd., S J Logistics has expanded its operational footprint and fortified its market presence.
Competitive Advantages S J Logistics thrives on several competitive strengths, including:
Long-standing Business Record: A proven track record underscored by years of industry experience.
Robust Client Relationships: Strong and enduring relationships with a diverse customer base.
Diverse Range of Services: Offering an extensive array of logistics services and innovative solutions.
Established Network and Partnerships: Leveraging an extensive agency network and strategic arrangements, enhancing operational efficiency and global reach.
Driving Efficiency and Growth S J Logistics’ commitment to excellence, coupled with its expansive service portfolio and global network, positions the company as a leader in providing reliable and efficient logistics solutions across diverse geographical domains.
Lot Size and Investment Details S J Logistics (India) Limited IPO
Retail and HNI Investment Parameters Investors participating in the S J Logistics IPO can bid for a minimum of 1000 shares and in multiples thereof. The table below outlines the minimum and maximum investment criteria for retail and High Net Worth Individual (HNI) investors in terms of shares and the corresponding investment amount:
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 1000 | ₹125,000 |
| Retail (Max) | 1 | 1000 | ₹125,000 |
| HNI (Min) | 2 | 2000 | ₹250,000 |
Retail Investor Parameters For retail investors, the minimum bid starts at 1 lot comprising 1000 shares, requiring an investment of Rs. 125,000. The maximum limit for retail investors remains the same at 1 lot, equating to Rs. 125,000 investment.
HNI Investor Parameters High Net Worth Individuals (HNIs) are mandated to bid for a minimum of 2 lots, amounting to 2000 shares, necessitating an investment of Rs. 250,000.
Promoter Holding Details S J Logistics (India) Limited IPO The Promoter of S J Logistics is identified as Rajen Hasmukhlal Shah, who holds a pivotal position within the company.
Share Holding Pre Issue: Before the IPO, the Promoter held a significant stake, accounting for 67.55% of the company’s shares.
Share Holding Post Issue: Following the IPO, the Promoter’s shareholding is anticipated to decrease to 49.64%.
Understanding Promoter Holding Changes The information indicates a notable shift in the Promoter’s stake from pre-issue to post-issue scenarios. The decrease in the Promoter’s holding post-issue is a common occurrence in IPOs as new shares are issued to public investors, diluting the Promoter’s ownership stake.
Implications for Investors Investors often assess Promoter holding changes as it reflects the Promoter’s confidence and commitment to the company. The reduction in Promoter holding post-issue, while common, should be evaluated along with other factors when considering investment decisions in the S J Logistics IPO.
S J Logistics (India) Limited: Restated Consolidated Financial Performance
Revenue Growth: Between March 31, 2022, and March 31, 2023, S J Logistics witnessed a 29.88% increase in revenue, reaching Rs. 13,500.99 Lakhs in March 2023 from Rs. 10,395.18 Lakhs in March 2022.
Profit After Tax (PAT): Notably, the company experienced a substantial surge in PAT by 340.23%, rising to Rs. 761.56 Lakhs in March 2023 from Rs. 172.99 Lakhs in March 2022.
Financial Snapshot Here’s a consolidated view of S J Logistics’ financial performance based on the periods ending on various dates:
| Period Ended | Assets (₹ Lakhs) | Revenue (₹ Lakhs) | Profit After Tax (₹ Lakhs) | Net Worth (₹ Lakhs) | Reserves and Surplus (₹ Lakhs) | Total Borrowing (₹ Lakhs) |
| 30 Sep 2023 | 10,541.07 | 10,338.56 | 931.07 | 5,640.93 | – | 2,952.40 |
| 31 Mar 2023 | 8,104.32 | 13,500.99 | 761.56 | 3,120.32 | 2,825.15 | 3,356.00 |
| 31 Mar 2022 | 5,062.51 | 10,395.18 | 172.99 | – | 1,342.14 | – |
| 31 Mar 2021 | 5,013.55 | 12,402.88 | 82.99 | – | 1,169.15 | – |
Financial Growth and Position S J Logistics demonstrated robust financial growth, evident in the substantial increase in revenue and a noteworthy surge in profitability over the observed periods. The company’s asset base and net worth have also shown substantial increments, signifying an upward trajectory in its financial stability and operational expansion.
Objects of the Issue (S J Logistics IPO Objectives)
The proposed utilization of Net Proceeds from the S J Logistics IPO is outlined as follows:
Repayment and/or Pre-payment of Borrowings A significant portion of the funds raised from the IPO will be allocated to repay and/or pre-pay certain borrowings availed by the company. This initiative aims to reduce the debt burden, contributing to improved financial flexibility and potentially lower interest expenses.
Meeting Working Capital Requirements Allocating a portion of the Net Proceeds towards fulfilling working capital requirements ensures the company’s operational continuity and smooth functioning of day-to-day business activities. This injection of funds into working capital facilitates sustained operations and business growth.
General Corporate Purpose A segment of the funds will be utilized for general corporate purposes. This broad category encompasses various operational and growth-related expenses, providing the company with flexibility in utilizing funds as per evolving business needs.
