The much-anticipated initial public offering (IPO) of Jayesh Logistics Limited is set to hit the market next week, marking a significant moment for investors looking to tap into India's growing logistics sector. Here's everything you need to know before considering this investment opportunity.
IPO Timeline and Key Dates
The public offering will open for subscription on Monday, December 18, 2023, and will close on Wednesday, December 20, 2023. Investors have a three-day window to participate in what could be a promising addition to their portfolio.
Pricing and Financial Details
The company has fixed the price band at ₹65 to ₹69 per equity share, making it accessible to retail investors. With a face value of ₹10 per share, the IPO comprises a fresh issue of up to 1.2 crore shares, aiming to raise capital for business expansion and working capital requirements.
Lot Size and Investment Structure
For retail investors, the minimum lot size has been set at 2,000 shares, requiring a minimum investment of approximately ₹138,000 at the upper price band. This structure is designed to attract serious, long-term investors to the company.
About Jayesh Logistics Limited
Headquartered in Ahmedabad, Jayesh Logistics has established itself as a significant player in the integrated logistics solutions space. The company offers comprehensive services including freight forwarding, customs clearance, warehousing, and transportation management.
Financial Performance Highlights
The company has demonstrated consistent financial growth, with recent filings showing:
- Steady revenue growth over the past three fiscal years
- Improved operational efficiency and margin expansion
- Strong client relationships across multiple industries
- Strategic expansion plans post-IPO listing
Market Position and Growth Prospects
Jayesh Logistics operates in the rapidly expanding Indian logistics market, which is benefiting from increased manufacturing activity, e-commerce growth, and government infrastructure initiatives. The company's strategic location in Gujarat provides access to key ports and industrial corridors.
IPO Objectives and Fund Utilization
The proceeds from the fresh issue will be utilized for:
- Expansion of warehouse facilities and infrastructure
- Technology upgradation and digital transformation
- Working capital requirements
- General corporate purposes
Investor Considerations
Before investing, potential subscribers should evaluate:
- The company's competitive positioning in the logistics sector
- Management experience and track record
- Industry growth prospects and market conditions
- Valuation compared to industry peers
Listing and Trading Details
The shares are expected to be listed on both BSE and NSE, providing ample liquidity for investors. The tentative listing date is expected in late December or early January, subject to regulatory approvals.
As with any IPO investment, potential subscribers are advised to carefully read the red herring prospectus, understand the risk factors, and consult with financial advisors if needed. The Jayesh Logistics IPO represents an opportunity to participate in India's logistics growth story, but requires thorough due diligence.
