CJ Darcl Logistics to raise funds via IPO, files draft papers with SEBI

The proceeds from the fresh issue worth Rs 240 crore will be used to repay debt and Rs 10 crore will be used to buy electric vehicles

CJ Darcl Logistics Limited, a diversified logistics company in India, filed draft papers with capital market regulator to raise funds via initial public offerings.

The IPO comprises a fresh issue of Rs 340 crore and an offer for sale of up to 54.31 lakh shares by its existing shareholders and promoters.

The OFS consists of up to 3.69 lakh shares by Krishan Kumar Agarwal, up to 2.03 lakh shares by Roshan Lal Agarwal, up to 2.31 lakh shares by Narender Kumar Agarwal, up to 5.78 lakh shares by Vineet Aggarwal, up to 5.3 lakh shares by Sushma Agarwal, up to 4.47 lakh shares by Puneet Agarwal, upto 2.89 lakh shares by Tek Chand Agarwal.

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The proceeds from the fresh issue worth Rs 240 crore will be used to repay debt and Rs 10 crore will be used to buy electric vehicles. As of July 2023, total debt of the company on a consolidated basis stood at Rs 803.82 crore.

This diversified logistics company offers a wide range of services, including road and rail transportation, warehousing and distribution, integrated logistics solutions (such as project logistics, 3PL, and freight forwarding), as well as additional services like air cargo and coastal transportation.

As of March 2023, the company had a network of 820,333 partner fleets, thanks to long-standing vendor relationships. Additionally, they owned 990 commercial vehicles, including various types, and had 3 containerized rakes with 40 wagons each and 1,358 containers in their portfolio. With a nationwide presence, it operates across 5,249 locations through its 187 branch offices.

As of March 2023, it has non-binding work orders for FTL transportation worth Rs 38,57.56 crore to be executed in Fiscal 2024. Some of its clients include TATA Steel Limited, Reliance Industries Limited, ArcelorMittal Nippon Steel India Limited, Jindal Stainless Limited, ESL Steel Limited, Century Plyboards, Indigo Paints, Savli Copper Products Private Limited, Volvo Group India Private Limited, and Volvo CE India Private Limited etc.

ICICI Securities, Axis Capital, Mirae Asset Capital Markets are the lead managers to the issue.

For fiscal year 2023, the company reported a revenue of Rs 4215.83 crore, up 14.5 percent from a year ago while net profit stood at Rs 67.70 crore against Rs 61.37 crore last year. EBITDA stood at Rs 184.80 crore against Rs 154.58 crore a year ago.