Deccan Transcon Leasing Limited is coming with an IPO consisting of a fresh issue of 55,24,000 shares worth INR 59.66 crores and an offer to sell 5,00,000 shares worth INR 5.40 crores. The company aims to fund tank container procurement, working capital needs, and general corporate purposes.
Deccan Transcon Leasing IPO – Important Dates
| Deccan Transcon Leasing IPO Date | September 13, 2024 to September 18, 2024 |
| Deccan Transcon Leasing IPO Listing Date | September 23, 2024 |
| Deccan Transcon Leasing IPO Price | INR 102-108 per share |
| Deccan Transcon Leasing IPO Lot Size | 1200 Shares |
| Deccan Transcon Leasing IPO Total Issue Size | INR 65.06 crores |
| Deccan Transcon Leasing IPO Basis of Allotment | September 19, 2024 |
| Deccan Transcon Leasing IPO Initiation of Refunds | September 20, 2024 |
| Deccan Transcon Leasing IPO Credit of Shares to Demat | September 20, 2024 |
| Deccan Transcon Leasing IPO Issue Type | Book Built Issue IPO |
| Deccan Transcon Leasing IPO Listing At | NSE SME |
Read more Deccan Transcon Leasing Limited IPO GMP
Deccan Transcon Leasing Limited IPO – Company Profile
Deccan Transcon Leasing Limited delivers end-to-end freight and shipping solutions, including tank container logistics, fleet management, customs clearance, and NVOCC services. It specializes in bulk liquids and hazardous chemicals and provides leasing and comprehensive supply chain solutions.
Their extensive agency network and global partnerships enable them to access worldwide shippers and offer comprehensive end-to-end logistics solutions. Supported by their subsidiary and associate company, they efficiently meet global client logistics needs.
Their integrated tank container services enable tailored solutions for specific customer needs. They have over 100 long-term customers and served more than 884 clients in the past year, reflecting their broad market reach.
Deccan Transcon Leasing Ltd IPO Fundamental Analysis
Deccan Transcon Leasing Limited’s financial analysis reveals a mixed performance. Revenue increased over the periods, with profitability and EPS rising, while the debt-equity ratio decreased. Total assets grew, but RoNW fell, and liquidity improved, signaling growth and challenges.
- Revenue Trend: The revenue increased from ₹15,290.25 million in March 2022 to ₹17,959.66 million in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 15,255.71 million.
- Equity and Liabilities: Both equity and liability have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has increased from ₹519.10 million in March 2022 to ₹1,181.89 million by March 2024. The rise in profitability could be a source of confidence for investors.
- Earnings per Share (EPS): The diluted EPS has also increased from ₹3.08 in March 2022 to ₹6.87 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has reduced from 42.99% to 36.69%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations.
Deccan Transcon Leasing IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in Million) | 15,290.25 | 17,959.66 | 15,255.71 |
| Equity (₹ in Million) | 1,207.59 | 2,028.26 | 3,221.31 |
| Expenses (₹ in Million) | 14,669.40 | 17,119.29 | 13,951.46 |
| Profit and Loss After Tax (₹ in Million) | 519.10 | 855.70 | 1,181.89 |
| RoNW (%) | 42.99 | 42.19 | 36.69 |
| NAV per Equity Share (₹) | 7.16 | 12.03 | 18.73 |
| Diluted EPS only (₹) | 3.08 | 5.07 | 6.87 |
| Total Assets (in millions) | 3,924.64 | 5,407.72 | 7,721.58 |
| Total Liabilities (in millions) | 2,717.05 | 3,379.46 | 4,500.27 |
| Debt Equity Ratio | 0.82 | 0.88 | 0.72 |
| Current Ratio (in time) | 1.28 | 1.46 | 1.87 |
Deccan Transcon Leasing Limited IPO Peer Comparison
Deccan Transcon Leasing Ltd shows moderate revenue with steady EPS and RoNW, while Lancer Container Lines Ltd boasts high revenue and moderate EPS with a lower RoNW. S J Logistics (India) Ltd features substantial revenue and high profitability metrics.
| Company | Revenue from operations (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Deccan Transcon Leasing Ltd | 15,255.71 | 10 | – | 6.87 | 6.87 | 36.69 | 18.73 |
| Lancer Container Lines Ltd | 63,340.99 | 10 | 17.66 | 2.65 | 2.7 | 14.58 | 21.13 |
| S J Logistics ( India ) Ltd | 27,086.02 | 10 | 29.01 | 20.03 | 20.03 | 20.18 | 105.27 |
Deccan Transcon Leasing Ltd IPO Objective
The main objective of Deccan Transcon Leasing Limited is to fund capital expenditure for tank container procurement and support the company’s working capital requirements.
- Funding capital expenditure requirements towards procurement of Tank Containers: The company intends to utilize INR 24.60 crores for new tank containers and INR 3.14 crores for pre-owned containers, boosting fleet capacity and efficiency while ensuring high quality and longevity for diverse transportation needs.
- To meet the company’s working capital requirements: The company plans to utilize INR 11.50 crores to fund working capital requirements, supporting growth, strategic opportunities, and operational needs. This additional capital is expected to drive increased revenues and profitability.
- General corporate purposes: The company plans to use the net proceeds for general corporate purposes, including business development initiatives, covering salaries, rent, administration costs, insurance premiums, repairs, maintenance, and other routine expenses or difficulties.
Deccan Transcon Leasing IPO Risks And Challenges
Deccan Transcon Leasing Limited’s risk includes misinterpretation of “Leasing” as NBFC-related, reliance on key clients and a major China-based customer, potential cost increases, and customer loss impacting profitability, operations, and cash flow.
- The term “Leasing” in their name does not classify them as an NBFC. They focus on operational tank container leasing, which significantly impacts their operating margins despite being a modest revenue contributor.
- They offer comprehensive freight and shipping solutions, with revenue heavily reliant on client retention. Increased costs and loss of customers could impact profitability. Additionally, dependence on a significant China-based customer poses a risk amid geopolitical tensions.
- Their revenue heavily relies on top customers, including associates. Any decline in demand or loss of these key clients, coupled with potential price reductions, could significantly impact their operations, financial condition, and cash flow.
Deccan Transcon Leasing Ltd IPO – Industry & Market Potential
In FY24, India’s key ports handled 818 million tonnes of cargo, a 4.45% increase. Significant investments include $82 billion in port projects by 2035, a new shipping fleet, and enhanced infrastructure under the Sagarmala program.
The global freight & logistics market is set to grow to $18.69 billion by 2026, with logistics alone reaching $6.55 trillion by 2027. Key sectors include manufacturing, with Asia-Pacific leading and North America growing fastest.
The Indian ports sector shows promising growth, with a projected 5-6% CAGR in capacity addition. The Sagarmala project is investing $82 billion, and the government plans to operationalize 23 waterways by 2030, enhancing freight efficiency.
Deccan Transcon Leasing Limited IPO – Type of Offer
Deccan Transcon Leasing Limited plans a fresh issue of shares, seeking INR 59.66 crores to fund tank container procurement, working capital needs, and general corporate purposes. Additionally, the company proposes an offer for sale, intending to sell 5,00,000 existing shares.
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 56.66 crores. The company intends to utilize the proceeds from the fresh issue to fund tank container procurement, working capital needs, and general corporate purposes.
- Offer for sale: Deccan Transcon Leasing Limited is offering to sell 5,00,000 existing shares. The following are the details of the existing shareholders who are also the promoters selling the shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale (in millions) |
| Rajendra Sethia | 54,00,000 |
Deccan Transcon Leasing IPO Offer Size
The offer size of Deccan Transcon Leasing Limited is INR 65.06 crores, consisting of a fresh issue of a fresh issue of 55,24,000 shares worth INR 59.66 crores and an offer to sell 5,00,000 shares worth INR 5.40 crores. The company seeks funds for container procurement, working capital needs, and general corporate purposes.
Deccan Transcon Leasing Limited IPO Allotment Structure
Deccan Transcon Leasing Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 330,000 shares are reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Maker Reservation: A portion of shares, i.e. 330,000 shares, are reserved for market makers.
Read more about Deccan Transcon Leasing IPO Allotment Status
How to apply for Deccan Transcon Leasing IPO?
To apply for the Deccan Transcon Leasing Limited IPO through Alice Blue, follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Deccan Transcon Leasing Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Deccan Transcon Leasing Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
Read more Deccan Transcon Leasing IPO Day 1 Subscription
How do you check Deccan Transcon Leasing IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Deccan Transcon Leasing Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Deccan Transcon Leasing Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Deccan Transcon Leasing Limited IPO:
● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Deccan Transcon Leasing Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Read more Deccan Transcon Leasing IPO Day 2 Subscription
Deccan Transcon Leasing Ltd IPO Offer Registrar
The registrar for the Deccan Transcon Leasing Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
LINK INTIME INDIA PRIVATE LIMITED
C-101, 247 Park, 1st Floor L.B.S Marg,
Vikhroli West Mumbai-400083,
Maharashtra, India
Telephone: +91 8108114949
Email: [email protected]
Website: www.linkintime.co.in
Read more about Deccan Transcon Leasing IPO Day 3 Subscription
Deccan Transcon Leasing IPO – FAQs
1. What is the allotment date of the Deccan Transcon Leasing IPO?
The allotment date of the Deccan Transcon Leasing Limited IPO is September 19, 2024.
2. What is the price band of the Deccan Transcon Leasing IPO?
The price band of the issue is INR 102-108 per share.
3. What is the size of the Deccan Transcon Leasing IPO?
The offer size of Deccan Transcon Leasing Limited is INR 65.06 crores, consisting of a fresh issue of a fresh issue of 55,24,000 shares worth INR 59.66 crores and an offer to sell 5,00,000 shares worth INR 5.40 crores. The company seeks funds for container procurement, working capital needs, and general corporate purposes.
4. What is the listing date of the Deccan Transcon Leasing IPO?
The listing date of Deccan Transcon Leasing Limited’s IPO is September 23, 2024.
