CIA 1
IPO AND BOOK BUILDING
Submitted by: Shreya Namana
Submitted to:
Roll Number: 2221428
Dr Hariharan R
Class: 2 BBA D
Professor
Subject Name: Corporate Accounting
Course Code: BBA 234
Date of Submission: 27th January 2023
Christ University
School of Business and Management
COMPANY CHOSEN: TRANSVOY LOGISTICS INDIA
LIMITED
INTRODUCTION
The largest integrated logistics solutions provider in India, Transvoy
Logistics India Limited handles everything from cargo transportation to
on-time delivery to the intended place. They are industry leaders both locally
and internationally in transportation handling, customs clearing, and freight forwarding.
Their goal is to provide clients with fully integrated services and to serve them with quality that
goes above and beyond their expectations and needs. By doing this, they hope to establish and
grow a long-term partnership that will result in market leadership for all parties. Leading freight
forwarders focus on intercontinental air freight, ocean freight, and end-to-end supply chain
management solutions.
Their Core business can be divided into the following categories:
a) Freight Forwarding
b) Customs Clearance
c) Allied Logistics and Transportation Services
PURPOSE OF FUNDRAISING
According to the prospectus of Transvoy Logistics India Limited, it is mentioned that the Net
Issue Proceeds will be utilized for the following purposes:
1. To Meet Working Capital Requirements
2. Investment In a Subsidiary for The Purchase of Containers
3. General Corporate Purpose
4. To meet Public Issue Expenses
TRANSVOY LOGISTICS INDIA LTD. IPO DETAILS
AMOUNT OF CAPITAL TO BE RAISED: INR 5.11 CR
NUMBER OF SHARES: 7,20,000 shares
SHARE ISSUE PRICE BAND: INR 71 per share.
MINIMUM NUMBER TO BE APPLIED: 1,600 shares (INR 113,600)
MODE OF PAYMENT:
 Each ASBA Applicant is understood to have consented to block the
entire Application Amount and given the Designated Branch of the
SCSB permission to do so upon submission of an Application Form to
the SCSB, whether in physical or electronic form. This applies to the
bank account maintained with the SCSB.
 In the application form, applicants must include the UPI ID or bank
account number, as appropriate. The application form presented by
the applicant and accompanied by any form of payment other than
blocked funds in the ASBA Account, including cash, demand
draughts, checks, money orders, postal orders, and others, may not be
accepted.
 Until the application is withdrawn or rejected, or the SCSB or Sponsor
Bank receives instructions from the Registrar to unblock the
application amount, the application amount must be frozen in the
applicable bank account.
DATE OF OPENING AND CLOSING OF APPLICATION: 20 – 24 January 2023
FINANCIAL INSTITUTIONS INVOLVED: Beeline and Linkintime are the lead
managers for the issue.
RISK FACTORS:
 One of the company's subsidiaries is presently the subject of ongoing
tax investigations and statutory authority's actions. Any
unfavorable ruling in these processes could subject them to a range of
fines and/or monetary damages and have a negative impact on their
operations and business.
 Their network of international agents helps them fulfill their
customers' logistical demands through their freight forwarding
company. The company's revenues and profitability may suffer if they
are unable to retain their ties with their international sales agents or if
these agents fail to deliver adequate service.
 The average price at which their Promoters acquire equity shares is
less than the issue price.
 Any pandemic or broad public health crisis, including the COVID-19
pandemic, might have a negative and material impact on their
operations, financial situation, cash flows, and business.
These were some of the important risk factors of the company, there is a total of 45
risk factors mentioned in the prospectus of Transvoy Logistics India Ltd.
CONCLUSION
Therefore, to conclude, if I were an investor, I wouldn’t subscribe to the shares of
Transvoy Logistics India Limited. This is because I’ve considered the risk factors
from the prospectus as well as other reasons that are listed below:
1. The market the company operates in is very competitive. The asking price
does not correspond to its past financial performance.
2. The issue seems to be excessively priced based on its most recent profits.
3. Small paid-up equity capital following the IPO and a longer migratory
gestation period to the mainboard are both causes for concern.
REFERENCES
https://www.chittorgarh.com/ipo_review/transvoy-logistics-india-ipo/3483/
https://www.transvoy.com/