Stellar Start: Kaushalya Logistics lists at 33% premium at Rs 100 per share on the NSE

Kaushalya Logistics Limited provides clearing and forwarding services to a leading cement company in India. The company also distributes electronics and home appliances through an online e-commerce platform, which debuted on the Indian stock market today.

Upon its debut on the NSE, the stock opened at Rs 100 per share, reflecting a 33% premium compared to the final issue price of Rs 75 per share. The current market capitalisation of the company stands at Rs 187 crore. As of writing the article, the stock is trading at Rs 101 per share on the NSE, while its intraday high and low are Rs 105 and Rs 100 respectively.

IPO Proceeds:

The company intends to use the net proceeds from the Fresh Issue for the following purposes: Repayment of Unsecured loan, Funding of working capital requirement, and general corporate purposes.

Company profile:

Kaushalya Logistics Limited provides clearing and forwarding services to a leading cement company in India. The company also distributes electronics and home appliances through an online e-commerce platform. In FY23, the company entered the commercial real estate leasing business. The company offers the following services:

Logistics & Transportation – The company provides customized services to cement companies, including multimodal transportation, pick-up, packing, delivery, distribution, and full documentation.

Land transportation – This service includes transporting the customer’s goods by land. The company receives goods shipped by rail from the cement companies and organizes local transport to the warehouses.

Warehousing and distribution – The warehouses used by Kaushalya Logistics are either owned or rented by customers. The company offers complete warehousing solutions, from creating invoices and delivery bills via the customer’s ERP system to organizing transportation for delivery to distributors through third-party providers. The company takes full responsibility for door-to-door delivery, i.e., it collects the consignment from the shipper and delivers it to the consignee.

The company offers services in Tamil Nadu, Kerala, Karnataka, Bihar, and Rajasthan and has its head office in New Delhi and a regional office in Chennai.

Subscription details: 

On January 3, 2024, the final day of the IPO window, the IPO witnessed an impressive response, with a subscription rate of 390.88 times. The public issue received remarkable interest, with the retail category being subscribed 375.44 times, the QIB category achieving a subscription rate of 92.62 times, and the NII category reaching a subscription rate of 847.88 times.

The company attracted Rs 10.01 crore from various anchor investors by allocating 13.34 lakh equity shares at Rs 75 per share. The complete lock-in period for these anchor investors ends on May 20, 2024.

The IPO price range was set between Rs 71 and Rs 75, with a face value of Rs 10 per share and a lot size of 1600 shares. The total size of the company’s IPO was Rs 36.60 crore, and the final share issue price was fixed at Rs 75 each.

Financial Performance:

Conclusion: 

The key dilemma for investors lies in whether to hold onto their shares. Those who applied for the IPO solely intending to capitalise on listing gains have earned an impressive multibagger 33% return over its final issue price on the listing day itself. Investors who applied for the IPO for listing gains may consider closing their positions. Conversely, investors with a higher risk tolerance might opt to hold onto their shares for the medium to long term, as this strategy could potentially yield benefits over time.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.