In a significant move within India's bustling logistics sector, Yatayat Corporation India Ltd has taken a decisive step towards going public. The company has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (Sebi), seeking approval to raise capital through an initial public offering (IPO).
IPO Structure and Fund Utilization
The proposed public offering is a mix of fresh equity and an offer for sale by a promoter. According to the filed documents, the IPO comprises a fresh issue of up to 77 lakh equity shares. Alongside this, there will be an offer for sale (OFS) of up to 56 lakh equity shares by a promoter. This combination brings the total offer size to a substantial 1.33 crore shares.
The capital generated from the fresh issue portion is earmarked for specific corporate needs. The primary use of the proceeds will be to meet working capital requirements. The remaining funds are intended for general corporate purposes, providing the company with financial flexibility to pursue its growth strategies.
Business Model and Financial Performance
Yatayat Corporation operates squarely in the road logistics and transportation domain, with a specialized focus on Full Truck Load (FTL) services. The company facilitates point-to-point freight movement across the nation's major logistics corridors. Its operational strength is backed by a widespread network of 34 branches and one warehouse, strategically located across 12 Indian states.
The company boasts a highly diversified client portfolio, which shields it from over-reliance on any single industry. Its services cater to a wide array of sectors including:
- Agriculture and agri-inputs
- Building materials and construction
- Chemicals and allied industries
- Energy and power
- Engineering and industrial manufacturing
Other key segments include IT and technology solutions, metals and mining, textiles and apparel, alongside various other industrial and consumer verticals.
Financially, Yatayat Corporation has demonstrated robust growth. The firm's revenue from operations saw a significant jump, rising from Rs 348.34 crore in the financial year 2023-24 (FY24) to Rs 448.13 crore in FY25. More impressively, its bottom line strengthened considerably, with profit after tax doubling from Rs 15 crore in FY24 to Rs 30 crore in FY25.
Market Context and Advisors
This IPO filing comes at a time when the road freight segment in India is experiencing sustained strong demand, driven by economic activity and infrastructural development. The move will allow Yatayat to tap into public markets to fuel its expansion plans and solidify its market position.
The company has appointed Unistone Capital as the sole book-running lead manager for the issue. This entity will be responsible for managing the IPO process, including investor outreach and book-building.
The filing of the DRHP is the first major regulatory step in the IPO journey. The company will now await observations from Sebi before proceeding to launch the public issue, marking a new chapter in its corporate evolution.
