Shree Vasu Logistics IPO Review (Date, Price, DRHP)

shree vasu ipo review

Shree Vasu Logistics Limited was originally incorporated in the year 2007, March 21. The company is Raipur based, engaged in various logistics services like Warehousing, carrying and forwarding agent, inventory, and distribution management through secondary transportation. Shree Vasu has positioned as the third party logistics service provider. The company mainly depends on the domestic market specifically in the state of Chattisgarh. Shree Vasu’s issue price, face value, issue type, issue size etc for their forthcoming issue. Here in this post, our Shree Vasu Logistics IPO Review can give a brief analysis to the investors. The list is as follows:

Shree Vasu Logistics Limited-Issue Details

  • Issue open on- May 23, 2018
  • The issue close on- May 25, 2018
  • Issue type: Book Built Issue IPO
  • Face value: Rs 10 Per Equity Share
  • Issue size: 2,064,000 Equity Shares of Rs 10 that aggregating up to Rs. 9.29 Cr
  • Issue price: Rs 45 Per Equity share
  • Market lot: 3000 Shares
  • Listing At: NSE SME exchange
  • Minimum order quantity: 3000 Shares
  • DRHP: Click here

Purpose of Issuing Stock

Therefore, the purpose of issuing stock plays an important role in analyzing market scenario.

  • Issuing stock in the market can enhance the company’s brand name, corporate image.
  • It will fulfill the working capital requirements of the company.
  • Allow providing liquidity to shareholders
  •  Issuing stock provides the public market for the equity shares in India.

About the Company

  • At present, the company is serving different types of industries, such as automobiles, electronics, food, industrial equipment, lifestyle products, electrical etc.
  • Their main strategy is to satisfy customers through constant innovation and process enhancement in their service.
  • For quality management and food safety, Shree Vasu Logistics Limited has received IMC Ramakrishna Bajaj National Quality Award and an award from Confederation of Indian Industry (CII).
  • Their spectrum of services includes carrying and forwarding agent model, warehousing, and inventory management, distribution management through secondary transportation.
  • Their competitive strength includes the modern process and technology, team of professionals, customer-oriented approach.
  • They have the various business strategies.
  • It has 366 employees on its payroll.

Management Group

  • Managing Director: Atul Garg
  • Wholetime Director: Shree Bhushan Garg
  • Director: Preeti Garg

Financial Information

By the help of financial information, investors can analyze and invest their money in a right way.

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shree vasu logistics ipo review

Shree Vasu Logistics IPO Review:

As per their restated financial statement presented in the DRHP, from FY 2012-13 to FY 2016-17, total revenue has grown from Rs. 1642.76 lakhs to Rs. 2769.19 lakhs. Along with this, profit has grown from 39.72 lakhs to 78.69 lakhs. According to the last financial year, Shree Vasu Logistic Limited stands at earning per share of 1.71. The DRHP also shows the price to earnings ratio based on the basic and diluted EPS of FY 2016-2017 stands at 31.91 while average P/E ratio is 13.76. Hence, the PE ratio is much higher than average, that means the company share is overvalued. In the last FY, the return on net worth (RoNW) stands at 13.62%. The company has a NAV/share of 10.35 as per the last financial year.

If we consider the overvalued price to some extent then overall the company Shree Vasu Logistics IPO Review has a NEUTRAL view. As the company’s financial data shows gradually increasing profit statement, its IPO may be profitable for long-term investors only.

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