Dhillon Freight Carrier Makes Modest Debut on BSE SME Platform
Dhillon Freight Carrier, a logistics company, listed on the BSE SME platform on October 7. The IPO raised Rs 10.08 crore with shares priced at Rs 72 each. The issue was subscribed 2.91 times overall, with retail investors showing strong interest at 4.87 times subscription. The company operates across West Bengal, Bihar, Delhi, and Uttar Pradesh with a fleet of 62 vehicles and 22 offices. Dhillon Freight reported revenue of Rs 25.22 crore and a profit after tax of Rs 1.73 crore, marking a 58% year-on-year increase. The IPO proceeds will primarily be used to purchase new transportation vehicles and for general corporate purposes.
*this image is generated using AI for illustrative purposes only.
Dhillon Freight Carrier, a logistics company operating across multiple states in India, made its debut on the BSE SME platform on October 7. The company's Initial Public Offering (IPO) raised Rs 10.08 crore, with shares priced at Rs 72 each. Here's a closer look at the listing and the company's profile:
IPO Performance
| Aspect | Details |
|---|---|
| Issue Size | Rs 10.08 crore |
| Issue Price | Rs 72 per share |
| Overall Subscription | 2.91 times |
| Retail Investor Subscription | 4.87 times |
| Non-Institutional Investor Subscription | 0.96 times |
| Grey Market Premium | Zero |
The IPO's subscription levels indicate a mixed response, with strong interest from retail investors but lukewarm participation from non-institutional investors. The zero grey market premium suggests that the shares may list close to the issue price.
Company Overview
Dhillon Freight Carrier operates in the logistics sector with a significant presence in several states:
| Aspect | Details |
|---|---|
| Operating States | West Bengal, Bihar, Delhi, Uttar Pradesh |
| Fleet Size | 62 vehicles |
| Office Network | 22 offices |
| Revenue | Rs 25.22 crore |
| Profit After Tax | Rs 1.73 crore (58% YoY increase) |
The company has shown growth in its financial performance, with a notable increase in profit after tax compared to the previous year.
IPO Proceeds Utilization
The funds raised from the IPO will be allocated as follows:
| Purpose | Amount (in Rs crore) |
|---|---|
| Purchase of new transportation vehicles | 7.67 |
| General corporate purposes (including technology upgrades and working capital) | Remaining funds |
By investing in new vehicles, Dhillon Freight Carrier aims to expand its capacity and potentially improve its service offerings. The allocation for technology upgrades and working capital indicates a focus on operational efficiency and growth.
The listing of Dhillon Freight Carrier on the BSE SME platform represents an opportunity for the company to access capital markets for future growth. However, the muted grey market premium and mixed subscription rates suggest that investors may be taking a cautious approach to this new entrant in the public market.
As with any new listing, especially in the SME segment, investors should conduct thorough research and consider their risk appetite before making investment decisions.
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