Ashapura Logistics IPO : GMP, Share listing and company history

When a company’s IPO arrives, it presents an excellent opportunity for investors. On July 30, 2024, several companies will be listed on the stock market, one of which is “Ashapura Logistics.” Investors have been closely watching this company, and now it is set to launch its IPO. The company aims to raise Rs 52.56 crore by issuing 36.57 lakh new shares. Ashapura Logistics has achieved significant success in a short time.

Ashapura Logistics is one of the leading transportation companies in the whole of India, which is working in various fields related to transportation. The company will go public with this IPO and if we look at the company’s records, they look positive. The company is working to expand its area of ​​operation with several vehicles. Ashapura Logistics is one of the emerging companies in India that has a different place in the market under its work and business model.

There are speculations of this stock being listed at many times more than the company’s GMP target. Under the IPO of this company, returns are being talked about much more than what the company had estimated. In today’s article, we will learn about the history of Ashapura Logistics and important questions related to the company’s IPO, which will be very useful for investors.

Ashapura Logistics Ltd

Ashapura Logistics Limited is a logistics company established in 2002. The primary functions of the company include cargo handling, freight forwarding, transportation, warehousing, distribution, and coastal movement, serving various sectors. Ashapura Logistics operates throughout India and is recognized as one of the top logistics companies in the country.

As of March 2024, the company has 250 commercial trucks. Of these, 181 trucks belong to its subsidiary and 69 trucks are owned by the company. As of July 2024, the company manages 7 warehouses with a total storage capacity of 284,000 square feet. Ashapura Logistics has a strong global network of business associates and a strong presence in the Indian market.

Operating on the principles of partnership, efficiency and quality management, it provides customer-centric solutions for maximum efficiency and customer satisfaction. If we talk about the company in simple words then Ashapura Logistics is a one-stop shop for integrated import-export, pre-post customs clearance formalities, transportation, warehousing, distribution and door-to-door service and solution provider.

Ashapura Logistics Ltd IPO GMP

The IPO for Ashapura Logistics will open on July 30 and investors can participate until August 1. There are strong expectations that the Ashapura Logistics IPO will be profitable, with many believing it will not lead to losses. According to media reports, the Grey Market Premium (GMP) for the IPO is currently at Rs 55, and shares are anticipated to be listed at around Rs 199, suggesting a potential 38% profit for investors within just one day.

It will be interesting to see the final listing price of the shares. The price band for the Ashapura Logistics IPO has been set between Rs 136 and Rs 144 per share. Each lot for the IPO consists of 1,000 shares. Retail investors are required to invest a minimum of Rs 144,000, while non-institutional investors must invest at least Rs 288,000 for two lots.

An Initial Public Offering (IPO) occurs when a company sells its shares to the public for the first time. This process allows the company to raise new capital, which can be used for business expansion. During the IPO, the company must disclose information about its financial status and future plans. Investors use this information to decide whether or not to purchase shares. Once the IPO is complete, the company's shares are listed on the stock exchange, and trading begins. This marks a new opportunity for investors.

Ashapura Logistics Ltd. IPO listing

The Ashapura Logistics IPO is set to open on July 30 and will be listed on both the NSE and BSE on August 6, 2024. Shares will be allocated to investors on August 2. The estimated listing price is around Rs 199. In this IPO, 50% of the shares are reserved for qualified institutional investors, 35% for retail investors, and 15% for non-institutional investors. The company aims to raise Rs 52.56 crore by issuing 36.57 lakh new shares.

• Target to collect Rs 52.56 crore
• Will issue a total of 36.57 lakh new shares
• 50% Share Qualified Institutions Baryas
• 35% stake retail investors
• 15% share non-institutional investors

Managing Director: Ashapura Logistics Solution

The Managing Director of Ashapura Group is Mr. Sujit Chandrasekhar Kurup, who has successfully led the company to achieve significant milestones. He was appointed to this position in September 2023. Regarding the ownership stakes of the company’s Board of Directors and Management Team, they collectively own ₹341.44 million, which represents 18.41% of the company’s shares, with typical holding periods of one and a half years, respectively.

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The funds raised from the initial public offering (IPO) will be allocated to several key projects, including the construction of warehouses at their facilities in Mundra, Gujarat, purchasing vehicles and related equipment, addressing additional working capital needs, and supporting general business operations. The company is committed to advancing its business, and this effort is reflected in its consistent growth.

CSR Committee and Governance at Ashapura Logistics?

The company’s CSR initiatives are led by a special Corporate Social Responsibility Committee, which is responsible for overseeing and monitoring all CSR operations. The CSR Committee is responsible for developing and recommending CSR policies, enforcing compliance, and monitoring the progress of various programs. Ashapura Logistics, a company known for its steadfast dedication to sustainable business practices, has made great strides in its Corporate Social Responsibility (CSR) activities.

In the financial year 2023-24, the corporation not only fulfilled its CSR commitments but also exceeded them by making significant contributions to community and social welfare projects. This report includes complete details of the company’s CSR efforts, expenditures, and social impact. It looks positive towards the company’s work and its model. This shows that the way the company is working with its tasks and responsibilities will also be profitable for the investors in the future or simple words, investing in the company will prove to be a profitable deal.

How does Ashapura Logistics work?

Ashapura Logistics operates using an asset-based business model, owning or leasing essential assets such as commercial trucks, warehouses, and containers. The company has a presence across India, with facilities located at key ports and internal container depots.

To enhance productivity and improve customer experience, Ashapura Logistics utilizes technology, including a program called IMPEX that manages cargo handling and transportation operations. The corporation also operates a network of warehouses in several Indian states, including Tamil Nadu, Gujarat, Maharashtra, and Karnataka.

Other Top Logistic Companies in India

1. Container Corporation
2. Aegis Logistics
3. Blue Dart Express
4. Transport Corp
5. Allcargo Logistic

Ashapura Logistic IPO status?

The IPO of Ashapura Logistics generated significant investor interest, closing on a high note on August 1, the final day for bidding. The issue was oversubscribed by a staggering 185.82 times, receiving bids for nearly 45.24 crore shares compared to the 24.34 lakh shares available. This remarkable oversubscription reflects robust investor confidence in the company’s growth trajectory and its potential in the logistics sector. The strong demand highlights the company’s appeal to both institutional and retail investors.

Specifically for Non-Institutional Investors (NIIs), the IPO was oversubscribed by 289.72 times. In this category, 5.22 lakh shares were set aside, but NIIs submitted bids for over 15.12 crore shares. Meanwhile, in the retail phase of the IPO, 12.16 lakh shares were reserved, and bidders requested over 21.19 crore shares, resulting in a subscription rate of 174.31 times.

Conclusion

Ashapura Logistics Ltd’s IPO offers a significant investment opportunity, with the potential for substantial profits stemming from the company’s growth trajectory and market potential. The IPO aims to raise ₹52.56 crore by issuing 36.57 lakh shares, with a price band set between ₹136 and ₹144 per share. Investor sentiment is positive, as the Grey Market Premium (GMP) suggests a listing price of around ₹199, indicating a possible 38% profit on the first day of trading.

The funds raised will be allocated to key expansion projects, including the construction of warehouses and the purchase of additional assets. Under the leadership of Managing Director Sujit Kurup, Ashapura Logistics is well-positioned to take advantage of this IPO, further establishing its presence in India’s logistics sector. The company’s evolving business model may offer significant benefits for investors in the future. We’d love to hear your thoughts on this post about Ashapura Logistics! Please share your comments below.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investments in Share Market involve risks, including the potential loss of principal. Please consult a financial advisor before making any investment decisions.

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