Tejas Cargo India (TCIL), a logistics and transportation solutions provider, is set to debut on the NSE Emerge platform with an Initial Public Offering (IPO). The company aims to capitalize on the expanding logistics sector in India, leveraging its expertise and infrastructure. With a strong focus on technology integration and supply chain optimization, TCIL offers investors a unique opportunity in the fast-growing logistics sector. Here’s a deep dive into Tejas Cargo IPO review and key aspects for potential investors.
Table of Contents
#1 Tejas Cargo IPO Review – Company Overview
Incorporated in 2021, Tejas Cargo India specializes in third-party logistics (3PL), catering to industries such as e-commerce, FMCG, and manufacturing. Headquartered in Faridabad, Haryana, the company has rapidly expanded its footprint, offering comprehensive freight and warehousing solutions. The company has established itself as a reliable logistics partner for various industry segments, streamlining distribution and transportation through its strategic approach.
#2 Tejas Cargo IPO Analysis – Business Model
TCIL operates on an asset-light model, relying on a mix of owned and leased fleets. The company provides end-to-end logistics solutions, including full truckload (FTL), less-than-truckload (LTL), and warehousing services. By integrating technology, TCIL ensures real-time tracking and optimized route management, enhancing operational efficiency. The company’s emphasis on cost control and efficient logistics execution allows it to maintain competitive pricing while delivering value to customers.
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#3 Tejas Cargo IPO Review – Industry Overview
The Indian logistics industry is on a high-growth trajectory, projected to reach USD 380 billion by 2025, driven by rapid expansion in e-commerce, manufacturing, and infrastructure development. The sector contributes nearly 14% to India’s GDP, but with the government’s push towards logistics efficiency through initiatives like the PM Gati Shakti National Master Plan and the National Logistics Policy (NLP), this is expected to reduce to 8-10%, improving cost competitiveness.
The third-party logistics (3PL) segment, where Tejas Cargo operates, is experiencing significant growth, with the Indian 3PL market anticipated to grow at a CAGR of 8.2% from INR 2.3 lakh crore in 2023 to INR 3.5 lakh crore by 2028. The rise of e-commerce, expected to surpass USD 100 billion by 2025, is fueling demand for efficient logistics players who can offer scalable, technology-driven solutions.
Investors should note that the increasing adoption of IoT, GPS tracking, and AI-driven route optimization is reshaping the logistics sector, benefiting asset-light players like Tejas Cargo. However, competition remains intense, with established names such as Mahindra Logistics, TCI Express, and VRL Logistics dominating the market, making differentiation through service efficiency and cost optimization crucial for sustained profitability.
#4 Tejas Cargo IPO Analysis – Offer Details
The Tejas Cargo IPO is set to open for subscription on February 14, 2025, and close on February 18, 2025. This book-built issue aims to raise INR 105.84 crore through a fresh issue of 63 lakh shares. The IPO price band is INR 160 to INR 168 per share, with a minimum lot size of 800 shares, requiring a minimum investment of INR 1,28,000. The allotment is expected to be finalized on February 19, 2025, and the IPO is scheduled to be listed on February 21, 2025, on the NSE EMERGE platform
#5 Tejas Cargo IPO Review – Offer Structure
- Qualified Institutional Buyers (QIBs): Up to 50% of the Net Issue
- Non-Institutional Investors (NIIs): Minimum 15% of the Net Issue
- Retail Individual Investors (RIIs): Minimum 35% of the Net Issue
- Market Maker Reservation: 3,15,200 shares
- Employee Reservation: 63,200 shares
#6 Tejas Cargo IPO Review – Shareholders and Promoters Holding
The company is promoted by Chander Bindal and Manish Bindal, who collectively hold a significant pre-IPO stake. Post-IPO, promoter shareholding will be diluted to accommodate new investors while ensuring continued strategic control. The existing promoters have played a pivotal role in steering the company’s growth and operational strategies, ensuring steady expansion.
#7 Tejas Cargo IPO Analysis – Robust Financial Growth
| FY 2022* | FY 2023* | FY 2024 | H1 FY 2025 | |
| Revenue | 209.29 | 381.79 | 419.33 | 252.61 |
| Expenses | 205.45 | 370.85 | 405.20 | 243.41 |
| Net income | 3.16 | 9.86 | 13.22 | 8.75 |
| Margin (%) | 1.51 | 2.58 | 3.15 | 3.46 |
| EBITDA (%) | 4.00 | 8.60 | 16.46 | 18.04 |
| ROCE (%) | 24.80 | 44.50 | 28.30 | 13.52 |
*All Standalone Data
The company has demonstrated robust revenue growth and improved profitability, signaling strong operational efficiency. With a growing market presence and increasing demand for logistics solutions, TCIL is positioned for long-term financial stability.
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#8 Tejas Cargo IPO Review – Comparison with Listed Peers
Tejas Cargo India operates in the growing logistics sector, but how does it compare with its listed peers? TCIL reported a revenue of INR 419.32 crore, slightly lower than AVG Logistics (INR 479.88 crore) and significantly below RITCO Logistics (INR 933.30 crore). However, TCIL’s RONW (Return on Net Worth) stands at 23.85%, outperforming AVG Logistics (12.65%) and RITCO Logistics (17.80%), indicating strong financial efficiency. The company’s EPS of INR 7.52 and a NAV per share of INR 31.52 suggest a solid earnings base and asset strength.
#9 Tejas Cargo IPO Analysis – Strengths
- Scalable Business Model: Asset-light approach ensures flexibility and capital efficiency.
- Customized Warehousing Solutions: Unlike many competitors, TCIL offers tailored warehousing services, catering to sector-specific needs, including FMCG and retail.
- Technology-Driven Operations: Real-time tracking and automated route planning optimize logistics performance.
- Diversified Client Base: Servicing multiple sectors mitigates industry-specific risks.
- Robust Growth Trajectory: A CAGR of 46% in revenue highlights the company’s strong
market expansion and financial stability.
#10 Tejas Cargo IPO Review – Risks and Threats
- Customer Concentration Risk: Overdependence on a few major clients could pose financial instability if key contracts are lost.
- E-commerce Dependency: A slowdown in the e-commerce sector, one of TCIL’s key business drivers, could impact revenue growth.
- Cybersecurity Risks: Increased reliance on digital tracking and fleet management makes TCIL vulnerable to data breaches and cyberattacks.
- Driver Shortages: A lack of skilled truck drivers and logistics personnel could impact service efficiency and scalability.
- Rising Operational Costs: Inflation, increasing toll charges, and vehicle maintenance expenses could pressure profit margins.
Investor Takeaway
Tejas Cargo India IPO presents an opportunity for investors looking to tap into India’s burgeoning logistics sector. With a strong business model, steady financial growth, and strategic positioning, TCIL is poised for expansion. The company’s ability to scale operations efficiently, coupled with its asset-light strategy, enhances profitability prospects.
However, investors should weigh risks such as competition and regulatory changes before making an investment decision. Given the logistics industry’s long-term growth potential, TCIL’s IPO could be a compelling option for investors seeking exposure to a high-growth sector.