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IPO

Deccan Transcon Leasing Ltd

Deccan Transcon Leasing Ltd IPO

Status: Closed

Overview

IPO date

13 Sept 2024 to 19 Sept 2024

Face value

₹ 10 per share

Price

₹ 102 to ₹108 per share

Issue Size

6,024,000 shares
(aggregating up to ₹ 65.06 Cr)

Allotment Date

20 Sept 2024

Listing at

NSE

Issue type

Book Building - SME

Sector

Logistics

Objectives of Deccan Transcon Leasing Ltd IPO

Deccan Transcon Leasing Ltd IPO Strategy

About Deccan Transcon Leasing Ltd

Deccan Transcon Leasing Limited was incorporated on February 05, 2007, at Andhra Pradesh as Libenil Logistics Private Limited', a Private Limited Company by the Registrar of Companies, Andhra Pradesh. The Company name was changed to Deccan Transcon Leasing Private Limited', vide certified dated July 12, 2013, issued by the RoC, Andhra Pradesh. The Company status then got converted into a Public Limited and the name changed to Deccan Transcon Leasing Limited' through fresh Certificate of Incorporation dated March 27, 2024, issued by the RoC to Company. The Company provide end-to-end solutions for freight & shipping services which include domestic logistic of tank containers, Tank fleet management solution, custom clearance and transportation, Non-Vessel Operating Common Carriers (NVOCC) services. It is primarily engaged in providing tank containers on lease and logistic & supply chain solutions to clients in various sectors. It specialize in transportation of bulk liquids and hazardous chemicals, primarily utilizing tank containers as a mode of transport. One of the key strengths lies in Company's extensive agency network, built over years of experience in the industry. This network provides with access to shippers worldwide, enabling to logistics needs of clients across the globe. Additionally, the Company has established a strong network of partners with global coverage, apart from own Subsidiary and Associate company, to provide complete, end-to-end logistics solutions. The Company increased its fleet size to 30 tank containers and started tank operations to South-East Asia and the Middle-East in year 2014. It started specific business for one of the customers into Egypt and the USA in 2016. After a period of one year, a subsidiary company, called Deccan Shipping and Logistics Sdn. Bhd. was established in Malaysia to venture into the Southeast Asian market and extend tank operations into Far Eastern countries in 2018, through which the Company commenced initial operations in Europe. In 2019, the Subsidiary company acquired 44% stake in Deccan Orient Line Company Limited and started agency operations, freight forwarding business and regional sales. The Company acquired 47.5% stake in King Star Freight Services Private Limited to increase the presence and customer base in India in 2021-22, which expanded the network coverage to nearly 40 countries globally in 2022-23. The Company is proposing Initial Public Offer aggregating to 75,00,000 Equity Shares, comprising of 70,00,000 Equity Shares through Fresh Issue and 5,00,000 Equity Shares through Offer for Sale.

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Strengths vs Risks of Deccan Transcon Leasing Ltd

Know the pros & cons

Strengths

Long standing business track record.
Long-standing customer relationships.
Strong knowledge and expertise of its promoters.
Global coverage through network of agents.
Ability to provide end-to-end logistic solutions.

Risks

The Presence of term "Leasing" in the company's name does not classify it as a Non-Banking Financial Company (NBFC) under the concerned RBI regulations.
The company derives majority of its revenue from leasing and freight and shipping services. In the event the company is unable to increase or effectively manage its services under the said services, it could have an adverse impact on the Company's business and results of operations.
The company depends on certain key customers for its revenues which include its associate company and group company. A decrease in the revenues the company derives from them could materially and adversely affect its business, results of operations, cash flows and financial condition.
The company is heavily dependent on third party service providers or agents and suppliers to effectively carry on its logistics operations. Any deficiency in services provided by them or failures to maintain relationships with them could result in disruption in its operations, which could have an adverse effect on the company's business, financial condition, results of operations and cash flows:
The Company does not have Custom House Agent license.
Its freight & Shipping business is largely dependent on the company customer engaged in the Chemical & petrochemical Industry, Chemical businesses and products related thereto, any adverse impact on the chemical industry may effect on its results of operations and financial Conditions.
The company typically does not have long term agreement with its customers. If the company customers choose not to source their requirements from it, there may be a material adverse effect on its business, financial condition, cash flows and results of operations.
Its long-term growth and competitiveness are dependent on the company ability to control costs and pass on any increase in operating expenses to customers, while continuing to offer competitive pricing.
The company intend to utilise a portion of the Net Proceeds for funding its capital expenditure requirements of the Company. The company is yet to place the orders for such Tank Containers.
The company has high levels of fixed costs that will be incurred regardless of its level of business activity. Non utilization of containers or low productivity due to reduced demand, weather interruptions or other causes can have a significant negative effect on its results of operations and financial condition as a consequence.
Restrictions on purchase from China may adversely affect its business prospects, financial performance and cash flows.
The company is exposed to the risk of delays or bad debts by its clients and other counterparties, which may also result in cash flow mismatches.
There are outstanding legal proceedings involving the Company, Subsidiary Company, Group Company, Promoters and Directors.
Its results of operations may be adversely affected by the company inability to negotiate profitable contracts for the utilization of its containers. This will prevent it from utilizing its fleet at profitable levels, which could adversely affect the company profitability.
The processing, handling, and storage of oil and hazardous chemical products pose risks to its containers, vessel, products, personnel, and the environment, potentially harming its business operations, financial performance, and cash flow.
Its insurance coverage may not be adequate to protect the company against certain operating hazards and this may have a material adverse effect on its business and financial conditions.
The company business is exposed to foreign exchange rate related fluctuations.
The company funding requirements and proposed deployment of the Net Proceeds of the Offer have not been appraised by a bank or a financial institution and if there are any delays or cost overruns, its business, cash flows, financial condition and results of operations may be adversely affected.
There have been instances in the past where the company has not made certain regulatory filings with the RoC and there were certain instances of discrepancies in relation to certain statutory filings and corporate records of the Company.
The company has significant working capital requirements for its smooth day to day operations of business and discontinuance or the company inability to acquires adequate working capital timely and on favorable terms may have an adverse effect on its operations, profitability and growth prospects.
The company contingent liabilities as stated in its Restated Financial Statements could affect the company financial condition.
Changes in technology may render its current technologies obsolete or requires the company to undertake substantial capital investments, which could adversely affect its results of operations.
Its ability to attract, train and retain executives and other qualified employees is critical to its business, results of operations and future growth.
The company Promoters, Directors, Key Managerial Personnel and Senior Management Personnel may have interest in the Company, other than reimbursement of expenses incurred, remuneration or other benefits received.
The company has entered into and may continue to enter into related party transactions and there can be no assurance that such transactions have been on favourable terms.
The company faces competition in its business from organized and unorganized players, which may adversely affect its business operation and financial condition.
The Company has unsecured loans with a total outstanding amount of Rs.643.91 lakhs as of July 31, 2024, that may be recalled by the lenders at any time.
Its Promoters and Directors have interests in entities, which are in businesses similar or same to its and this may result in potential conflict of interest with the company.
The company has issued Equity Shares during the last one year at a price that may be below the Offer Price.
There are certain discrepancies and non- compliances noticed in some of its financial reporting and/or records relating to filing of returns and deposit of statutory dues with the taxation and other statutory authorities.
The Company's management will have flexibility in utilizing the net proceeds from the offer and the deployment of the net proceeds from the offer is not subject to any monitoring by any independent agency.
Its Promoters and Promoter Group will be able to exercise significant influence and control over the company operations after the issue and may have interests that are different from those of its other shareholders.
Its funds requirements are based on internal management estimates, wherever possible, and have not been appraised by any bank or financial institution. Any increase in the actual deployment of funds may cause an additional burden on its finance plans. The company has not entered into definitive agreements to utilize its Offer proceeds.
If the company fails to obtain, maintain or renew the statutory and regulatory licenses, permits and approvals required for its business and operations, the company business, results of operations, financial condition and cash flows may be adversely affected.
The company presently does not own the trademark or logo under which its currently operates and if third parties infringe the trademark, logo and intellectual property that the company use, its business and reputation would be adversely affected.
If the company is unable to source business opportunities effectively, its may not achieve the company financial objectives.
The company has certain amount of outstanding indebtedness, which requires significant cash flows to service and are subject to certain conditions and restrictions in terms of its financing arrangements, which restricts the company ability to conduct its business and operations in the manner the company desire.
The company has not independently verified certain data in this Red Herring Prospectus.
The requirements of being a listed company may strain its resources.
The company ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
The Equity Shares have never been publicly traded, and, after the offer, the equity shares may experience price and volume fluctuations, and an active trading market for the equity shares may not develop. Further, the price of the equity shares may be volatile, and you may be unable to resell the equity shares at or above the offer price, or at all.
The Company will not receive any proceeds from the Offer for Sale portion, and the Promoter Selling Shareholder shall be entitled to the Offer Proceeds to the extent of the Equity Shares offered by them in the Offer for Sale. Its Promoter are therefore interested in the Offer in connection with the Equity Shares offered by them in the Offer for Sale.
There are restrictions on daily weekly monthly movement in the price of the equity shares, which may adversely affect the shareholder's ability to sell for the price at which it can sell, equity shares at a particular point in time.
QIBs and NIBs are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid, and Retail Individual Bidders are not permitted to withdraw their Bids after the Bid/Offer Closing date.
Investors will not be able to sell immediately on an Indian stock exchange any of the Equity Shares they purchase in the Offer.
Any future issuance of Equity Shares may dilute the shareholding of the Investor, or any sale of Equity Shares by its Promoter or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.

Deccan Transcon Leasing Ltd Peer Comparison

Understand the company’s industry standing

Deccan Transcon Leasing Ltd

Lancer Containers Lines Ltd

S J Logistics (India) Ltd

Face Value

Standalone / Consolidated

Consolidated

Total Income Rs. Cr.

152.5571

633.4099

270.8602

EPS-Basis

6.87

2.65

20.03

EPS-Diluted

6.87

2.7

20.03

NAV Per Share

18.73

21.13

105.27

P/E-Basic EPS

---

17.66

29.01

P/E-Diluted EPS

---

RONW(%)

36.69

14.58

20.18

Latest NAV Period

---

Latest NAV

---

How to check the allotment status of Deccan Transcon Leasing Ltd IPO?

Follow the steps

Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).

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The IPO opens on 13 Sept 2024 & closes on 19 Sept 2024.

Deccan Transcon Leasing Ltd IPO will close on 19 Sept 2024.

Long standing business track record.
Long-standing customer relationships.
Strong knowledge and expertise of its promoters.
Global coverage through network of agents.
Ability to provide end-to-end logistic solutions.

S.No	Promoters Name	Pre Issue Shares	Pre Issue Percentage	Post Issue Shares	Post Issue Percentage
1	Jaidev Menon Parath	5991500	34.84	---	---
2	Karthik Menon	5002500	29.09	---	---
3	Miriyala Shekhar	2280832	13.26	---	---
4	Pranav Jaidev	1380000	8.02	---	---
5	Navaneeth Jaidev	168667	0.98	---	---

The Presence of term "Leasing" in the company's name does not classify it as a Non-Banking Financial Company (NBFC) under the concerned RBI regulations.
The company derives majority of its revenue from leasing and freight and shipping services. In the event the company is unable to increase or effectively manage its services under the said services, it could have an adverse impact on the Company's business and results of operations.
The company depends on certain key customers for its revenues which include its associate company and group company. A decrease in the revenues the company derives from them could materially and adversely affect its business, results of operations, cash flows and financial condition.
The company is heavily dependent on third party service providers or agents and suppliers to effectively carry on its logistics operations. Any deficiency in services provided by them or failures to maintain relationships with them could result in disruption in its operations, which could have an adverse effect on the company's business, financial condition, results of operations and cash flows:
The Company does not have Custom House Agent license.
Its freight & Shipping business is largely dependent on the company customer engaged in the Chemical & petrochemical Industry, Chemical businesses and products related thereto, any adverse impact on the chemical industry may effect on its results of operations and financial Conditions.
The company typically does not have long term agreement with its customers. If the company customers choose not to source their requirements from it, there may be a material adverse effect on its business, financial condition, cash flows and results of operations.
Its long-term growth and competitiveness are dependent on the company ability to control costs and pass on any increase in operating expenses to customers, while continuing to offer competitive pricing.
The company intend to utilise a portion of the Net Proceeds for funding its capital expenditure requirements of the Company. The company is yet to place the orders for such Tank Containers.
The company has high levels of fixed costs that will be incurred regardless of its level of business activity. Non utilization of containers or low productivity due to reduced demand, weather interruptions or other causes can have a significant negative effect on its results of operations and financial condition as a consequence.
Restrictions on purchase from China may adversely affect its business prospects, financial performance and cash flows.
The company is exposed to the risk of delays or bad debts by its clients and other counterparties, which may also result in cash flow mismatches.
There are outstanding legal proceedings involving the Company, Subsidiary Company, Group Company, Promoters and Directors.
Its results of operations may be adversely affected by the company inability to negotiate profitable contracts for the utilization of its containers. This will prevent it from utilizing its fleet at profitable levels, which could adversely affect the company profitability.
The processing, handling, and storage of oil and hazardous chemical products pose risks to its containers, vessel, products, personnel, and the environment, potentially harming its business operations, financial performance, and cash flow.
Its insurance coverage may not be adequate to protect the company against certain operating hazards and this may have a material adverse effect on its business and financial conditions.
The company business is exposed to foreign exchange rate related fluctuations.
The company funding requirements and proposed deployment of the Net Proceeds of the Offer have not been appraised by a bank or a financial institution and if there are any delays or cost overruns, its business, cash flows, financial condition and results of operations may be adversely affected.
There have been instances in the past where the company has not made certain regulatory filings with the RoC and there were certain instances of discrepancies in relation to certain statutory filings and corporate records of the Company.
The company has significant working capital requirements for its smooth day to day operations of business and discontinuance or the company inability to acquires adequate working capital timely and on favorable terms may have an adverse effect on its operations, profitability and growth prospects.
The company contingent liabilities as stated in its Restated Financial Statements could affect the company financial condition.
Changes in technology may render its current technologies obsolete or requires the company to undertake substantial capital investments, which could adversely affect its results of operations.
Its ability to attract, train and retain executives and other qualified employees is critical to its business, results of operations and future growth.
The company Promoters, Directors, Key Managerial Personnel and Senior Management Personnel may have interest in the Company, other than reimbursement of expenses incurred, remuneration or other benefits received.
The company has entered into and may continue to enter into related party transactions and there can be no assurance that such transactions have been on favourable terms.
The company faces competition in its business from organized and unorganized players, which may adversely affect its business operation and financial condition.
The Company has unsecured loans with a total outstanding amount of Rs.643.91 lakhs as of July 31, 2024, that may be recalled by the lenders at any time.
Its Promoters and Directors have interests in entities, which are in businesses similar or same to its and this may result in potential conflict of interest with the company.
The company has issued Equity Shares during the last one year at a price that may be below the Offer Price.
There are certain discrepancies and non- compliances noticed in some of its financial reporting and/or records relating to filing of returns and deposit of statutory dues with the taxation and other statutory authorities.
The Company's management will have flexibility in utilizing the net proceeds from the offer and the deployment of the net proceeds from the offer is not subject to any monitoring by any independent agency.
Its Promoters and Promoter Group will be able to exercise significant influence and control over the company operations after the issue and may have interests that are different from those of its other shareholders.
Its funds requirements are based on internal management estimates, wherever possible, and have not been appraised by any bank or financial institution. Any increase in the actual deployment of funds may cause an additional burden on its finance plans. The company has not entered into definitive agreements to utilize its Offer proceeds.
If the company fails to obtain, maintain or renew the statutory and regulatory licenses, permits and approvals required for its business and operations, the company business, results of operations, financial condition and cash flows may be adversely affected.
The company presently does not own the trademark or logo under which its currently operates and if third parties infringe the trademark, logo and intellectual property that the company use, its business and reputation would be adversely affected.
If the company is unable to source business opportunities effectively, its may not achieve the company financial objectives.
The company has certain amount of outstanding indebtedness, which requires significant cash flows to service and are subject to certain conditions and restrictions in terms of its financing arrangements, which restricts the company ability to conduct its business and operations in the manner the company desire.
The company has not independently verified certain data in this Red Herring Prospectus.
The requirements of being a listed company may strain its resources.
The company ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
The Equity Shares have never been publicly traded, and, after the offer, the equity shares may experience price and volume fluctuations, and an active trading market for the equity shares may not develop. Further, the price of the equity shares may be volatile, and you may be unable to resell the equity shares at or above the offer price, or at all.
The Company will not receive any proceeds from the Offer for Sale portion, and the Promoter Selling Shareholder shall be entitled to the Offer Proceeds to the extent of the Equity Shares offered by them in the Offer for Sale. Its Promoter are therefore interested in the Offer in connection with the Equity Shares offered by them in the Offer for Sale.
There are restrictions on daily weekly monthly movement in the price of the equity shares, which may adversely affect the shareholder's ability to sell for the price at which it can sell, equity shares at a particular point in time.
QIBs and NIBs are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid, and Retail Individual Bidders are not permitted to withdraw their Bids after the Bid/Offer Closing date.
Investors will not be able to sell immediately on an Indian stock exchange any of the Equity Shares they purchase in the Offer.
Any future issuance of Equity Shares may dilute the shareholding of the Investor, or any sale of Equity Shares by its Promoter or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.

The Issue type of Deccan Transcon Leasing Ltd is Book Building - SME.

The minimum application for shares of Deccan Transcon Leasing Ltd is 1200.

The total shares issue of Deccan Transcon Leasing Ltd is 6024000.

Initial public offer of up to 60,24,000* equity shares of face value of Rs. 10 each ("Equity Shares") of Deccan Transcon Leasing Limited ("Company") for cash at a price of Rs.108 per equity share (including a share premium of Rs. 98 per equity share) ("Offer Price") aggregating up to Rs. 65.06 crores comprising a fresh issue of up to 55,24,000 equity shares aggregating up to Rs. 59.66 crores by the company ("Fresh Issue") and an offer for sale of up to 5,00,000 equity shares aggregating up to Rs. 5.40 crores by the promoter selling shareholders & selling shareholders, (the "Offered Shares") (the "Offer for Sale" and together with the fresh issue, the "Offer") of which 3,30,000 equity shares aggregating to Rs. 3.56 crores will be reserved for subscription by market maker to the offer (the "Market Maker Reservation Portion"). The offer, less market maker reservation, i.e. net offer 56,94,000 equity shares of face value of Rs. 10 each at price of Rs. 108 per equity share aggregating to Rs. 61.50 crores is herein after referred to as the "Net Offer". The offer and the net offer will constitute 26.51% and 25.06% respectively of the fully diluted post-offer paid-up equity share capital of the company. Offer Price: Rs.108 per equity share of face value of Rs.10 each. The offer price 10.80 times of the face vlaue of equity shares. Anchor investor offer price: Rs.108 per equity shares the offer price is 10.80 times of the face value of equity shares. Bid cane be made for a minimum of 1200 equity shares and in multiples of 1200 equity shares thereafter.

Deccan Transcon Leasing Ltd IPODECCANTRAN

Objectives of Deccan Transcon Leasing Ltd IPO

Deccan Transcon Leasing Ltd IPO Strategy

About Deccan Transcon Leasing Ltd

Strengths vs Risks of Deccan Transcon Leasing Ltd

Strengths

Risks

Deccan Transcon Leasing Ltd Peer Comparison

How to check the allotment status of Deccan Transcon Leasing Ltd IPO?

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What are the promoter details of Deccan Transcon Leasing Ltd IPO?

What are the risks of Deccan Transcon Leasing Ltd?

What is the issue type of Deccan Transcon Leasing Ltd IPO?

What is the minimum application for shares of Deccan Transcon Leasing Ltd?

Total shares issue of Deccan Transcon Leasing Ltd IPO?

What are the objectives of Deccan Transcon Leasing Ltd IPO?

Deccan Transcon Leasing Ltd IPO