AVG Logistics Limited (ALL) is a third-party logistics service operator. It is Delhi based company. This company offers Full Truck Load (FTL) and “hub-and-spoke” transportation model and warehousing services to select clients with the pan-India distribution network and automated technology systems.Starting from March 28th AVG Logistics IPO will be open for investors to apply. So we check the AVG Logistics DRHP and based on that we are presenting our AVG Logistics Limited IPO Review here.
About AVG Logistics Limited IPO :
- IPO Opens on – March 28, 2018.
- IPO Closes on – April 3, 2018.
- Face Value – Rs. 10 Per Equity Share.
- Issue Price – Rs. 105 – Rs. 107 Per Equity Share.
- Issue Type – Book Built Issue IPO.
- Market Lot – 1200 Shares.
- Minimum Order Quantity – 1200 Shares.
- Issue Size – 3,090,000 Equity Shares of Rs 10 aggregating up to Rs 33.06 Cr.
- Listing Exchange – NSE SME Exchange.
- Draft Prospectus – Click Here.
Objectives of the issue:
- Setting-up Warehousing facilities at Agartala, Tripura, and Mysore (Mysuru), Karnataka.
- Working Capital Requirement.
- General Corporate Purpose.
- To meet Issue related Expenses.
About The Company –
- AVG Logistics Limited is incorporated in 2010.
- This company also offers its customers services in three key areas:(a) Transportation whereby this company provide point-to-point, less than truck-load, time-definite transportation services.
(b) Warehousing whereby this company provide warehousing, distribution and cold-chain warehousing.
(c) Value-added Services including, temperature-controlled logistics, supply chain solutions and cargo handling services at integrated check posts.
- AVG Logistics Limited had five (5) trans-shipment centres at Guwahati, Bangalore, Hyderabad, Delhi UP border, and Kundli (Delhi-Haryana border) and forty-nine (49) branches across India, covering twenty-three (23) states.
- This company operates two hundred sixty-four (264) owned containerised vehicles which are GPS-enabled vehicles, of which eighty-five (85) are refrigerated (reefer) trucks.
- AVG Logistics Limited also provides warehousing facilities to select customers and the warehouses are well connected to several manufacturing and consumption clusters in India aggregating to 3.54 lakh square feet.
- This company has warehouses in Modinagar, Ghaziabad, Delhi and Panipat.
- AVG Logistics Limited is in the process of setting up additional large format, multi-user warehouses in certain strategic locations and have acquired land at Agartala in Tripura and Mysore in Karnataka adding 1.08 lakhs square feet which will enable the expansion of its warehousing space to 4.62 lakhs square feet by April, 2019.
- This company had 521 full-time employees.
Promoters of the company :
- Mr. Sanjay Gupta, aged 50 years, is the Promoter and Managing Director of this company.
- Ms. Asha Gupta, aged 49 years, is the Promoter and Whole Time Director of this company.
- Ms. Niti Gupta, aged 26 years, is the Promoter of this company.
AVG Logistics Limited IPO Review: AVGLL has remained always profitable throughout the years as per the financial report published in the DRHP. In the last financial year, the company has earnings per share of 5.99 and a PE ratio of 16. The industry is trading at a PE of 45. Considering this factor, the issue looks cheap even at the issue price band of Rs. 105 – Rs. 107 per equity share. Hence, our AVG Logistics Limited IPO Review has a POSITIVE view on this issue. Long-term investors can apply to AVG Logistics IPO for a decent gain.
Categories: IPO Review