Jayesh Logistics Limited

This section provides an overview of the industry outlook, highlighting that the global economy is at a critical juncture amid shifting government policies and escalating trade tensions. It discusses the impact of these shocks on global growth forecasts, noting downward revisions, particularly for emerging markets. The text further details the specific economic situation in India, noting its strong growth drivers, export performance, and future expectations for infrastructure spending. It also covers market size statistics for India and its commitment to renewable energy goals.

The provided text discusses various aspects related to the Indian economy, government initiatives, and the logistics industry. It covers economic performance indicators, government policies aimed at boosting growth, and the transformation of the logistics sector. Key points include growth in exports, various investment figures, government schemes like 'Make in India', and efforts to improve logistics through infrastructure development and technological integration.

The company operates in the logistics and supply chain management industry, primarily providing freight services using road transportation like trucks and railways, along with non-freight services such as loading, unloading, truck hiring, custom clearance, and machinery hire. The company handles both domestic and cross-border consignments and offers end-to-end solutions to meet various client supply chain needs. They are certified under ISO 9001:2015 and ISO 14001:2015, and their operations are supported by an in-house fleet of 95 heavy material and cargo handling trucks. The company focuses on dominant routes in Eastern India, managing cargo movement from Kolkata and Haldia port to the hinterland, and possesses decade-long experience in the Indo-Nepal logistics corridor.

The company specializes in the transportation of goods using both flat bed and side-walled captive fleets of 18-Wheeler trucks across various industrial sectors. They operate on routes, including the Indo-Nepal corridor, and utilize advanced technology like a customized software named “SMART-SYS” to optimize logistics. The company generates revenue through various freight services, including road freight, hired fleet services, truck forwarding, and non-freight services such as railways, shipping, and customs clearance. Their services involve detailed processes from customer enquiry to consignment delivery, and they operate from an office in Kolkata, serving clients across India and into Nepal.

The company sources trucks directly from OEMs and prepares the bodies from established fabricators based on the vehicle's application. The company operates a captive hub at Durgapur Station and maintains an in-house team for daily maintenance and upkeep of its fleet. Vehicles acquired from 2022 are covered by Annual Maintenance Contracts with Tata Motors to ensure high uptime. The company follows a strict process for transhipment of cargo during breakdowns to minimize delays. The company has offices in Kolkata, including a Registered Office and a Corporate Office. Financial performance shows strong revenue growth, with revenue from operations increasing significantly over the years. The company's revenue is heavily dependent on Freight services, which constituted a large percentage of revenue in earlier years.

The company is developing technology, specifically the SMART-SYS software, to enhance operational efficiency and brand image by delivering customer-friendly and cost-effective services. Its competitive strength lies in deploying SMART-SYS, an integrated logistics IT solution that combines core operational systems like ERP and fleet tracking with customer-focused tools such as AI-driven CRM and payment integrations. The system is designed to eliminate manual inefficiencies and support real-time data tracking across various industries. The company caters to a wide range of end-market customers across diverse industrial sectors, holds quality certifications, and has experienced senior leadership in the industry.

The company details several operational aspects, including utility requirements, insurance coverage, and property arrangements. The company confirms it does not generate hazardous industrial effluents. It relies on commercial fuel stations for transportation needs and utilizes specialized IT and accounting software for daily operations. Furthermore, the company operates in a highly competitive logistics market, facing competition from several listed entities, and uses word-of-mouth and customer references for marketing. The company has insurance against its owned vehicles and has entered into a lease agreement for its corporate office.

The company's business operations in India are governed by various central and state legislations covering aspects such as industry-related laws, employment laws, intellectual property laws, foreign investment regulations, taxation laws, and other miscellaneous laws. These regulations mandate compliance with various acts concerning motor vehicles, labor welfare, trademark protection, foreign exchange controls, and tax provisions. The text details numerous laws, including those related to contracts, insurance, worker welfare, and the framework for resolving corporate insolvencies.

The company was originally incorporated on May 10, 2011, as a Private Limited Company. It later converted to a Public Limited Company on July 22, 2024, and changed its name to "Jayesh Logistics Limited," with a fresh certificate issued on August 13, 2024. The initial subscribers included Sanjay Kundaliya, Navita Kundaliya, Bishnu Kumar Bajaj, Rashmi Bajaj, RHMB India Private Limited, and Rishi Maheshwari as promoters. The company has undergone several amendments to its Memorandum of Association, including changes to authorized and issued share capital, and additions to object clauses related to software development and data analytics. The company has received various ISO certifications and awards over the years.

This section details the capital structure of the company as of the date of the Prospectus, outlining the authorized, issued, and paid-up equity share capital. It specifies various components of the issue, including fresh issues to the public, market maker portions, and allocations to individual, non-institutional, and qualified institutional buyers. Furthermore, it provides a history of changes to the authorized and paid-up capital, as well as details regarding the allotment of various types of shares, including bonus issues and private placements.

The section details the shareholding pattern of the company as on the date of the Prospectus, showing a breakdown across various categories. The Promoter and Promoter Group collectively hold 97.57% of the issued equity shares. The data also provides information on the build-up of shareholding by the Promoters since incorporation, including various allotments and transfers over time. Furthermore, the section confirms that all equity shares held by the Promoters are in dematerialized form.

This section details various transactions involving the allotment and transfer of equity shares, including events such as allotment in rights, bonus issues, and transfers to specific individuals. It outlines provisions regarding promoter contributions, including a lock-in period for a significant portion of the post-issue capital. Furthermore, the text confirms that no promoter shares have been pledged and specifies conditions related to the issuance of equity shares, such as the use of the Book Building Method and requirements under SEBI (ICDR) Regulations.

The company intends to raise funds through a public issue, with the net proceeds designated for several purposes. The utilization plan allocates a significant portion of the funds towards purchasing side wall trailers, funding working capital requirements, implementing a new logistics application phase, and covering general corporate purposes. The company emphasizes that the fund requirements are based on management estimates and are subject to change due to various external factors. Furthermore, the company details the financing arrangements for the side wall trailer purchase, including bank sanction letters, and notes that the actual cost and supply may vary.

This section details the financial structure, funding patterns, and proposed utilization of proceeds from the issue. The company's working capital requirements have shown an increasing trend, necessitating funding through various sources. The company plans to use IPO proceeds for the development of a Smart Logistics Application software, which is planned in two phases. Furthermore, the management has flexibility in utilizing proceeds earmarked for general corporate purposes, subject to certain limits and board approval.

The section details the estimated expenses related to the Issue, which amount to approximately ₹ 395.00 lakhs, covering various costs such as underwriting fees, printing, legal fees, and fees payable to various intermediaries. The total estimated issue expenses constitute 100.00% of the total issue proceeds, with a portion of the proceeds being allocated for these costs. The document also discusses the funding requirements, noting that any shortfall will be met by internal accruals or unsecured loans. Furthermore, it clarifies that no bridge financing arrangements will be repaid from the net issue proceeds, though certain amounts drawn from overdraft facilities for ongoing projects will be repaid. The company confirms that funds from the issue proceeds will not be used for equity or real estate investments.

The section discusses the certification of Key Performance Indicators (KPIs) by the Chief Financial Officer and the Audit Committee, confirming that no undisclosed KPIs existed prior to the prospectus filing. It outlines the commitment to continue disclosing these KPIs periodically for a specified duration post-listing or until the utilization of fresh issue proceeds is complete. The text also details various metrics for financial KPIs, including revenue, EBITDA, profit after tax, debt, and equity, which are used to track the company's performance over several years. Furthermore, it provides justifications for the issue price based on comparisons with industry peers and historical transaction data.

This section primarily deals with the statement of possible special tax benefits available to the Company and its shareholders under various Indian tax laws. It clarifies that the benefits discussed are not exhaustive and investors should consult their own tax consultants regarding the implications of investing in the equity shares. The document includes separate annexures detailing the status of these benefits under the Income-tax Act and the GST Act.

Prospective investors should be aware that investing in the equity shares involves a high degree of financial risk, which could lead to losses in the investment. Risks include potential liabilities arising from tax proceedings, litigation, and various operational risks related to the business's performance and supply chain. The company's revenue is heavily concentrated in specific geographical regions, making it vulnerable to adverse developments in those areas. Furthermore, the business relies on a limited number of customers and suppliers, and there are concerns about the stability of the working capital and the ability to secure necessary funds.

The company has faced numerous discrepancies and errors in its statutory filings with the Registrar of Companies (RoC) and other compliance requirements under the Companies Act, 2013, including missing CINs, signatures, and incorrect details across various forms. While the company has taken corrective measures and filed a form to rectify these issues, there is no assurance that future regulatory actions or penalties will not be imposed. Furthermore, negative cash flows have been recorded for recent periods, which could impact the company's growth and business operations. The company also faces risks related to high debt-equity ratios, potential fluctuations in interest rates, and the inability to pass on increases in operating expenses to customers. Operational risks include potential delays due to breakdowns, accidents, or issues with transportation, and exposure to claims from customers. Finally, there are risks concerning the protection and enforcement of intellectual property rights.

The company faces several material risks across various aspects of its operations and financial structure. These include risks associated with unsecured loans, customer disputes over service quality, and potential disruptions in the supply chain due to delays from truck vendors. Trade receivables present a significant risk to liquidity due to potential non-payment by clients, and there is uncertainty regarding the ability to manage these receivables effectively. Furthermore, the business is exposed to risks from inadequate insurance coverage, increased competition in the logistics industry, and dependency on qualified drivers and reliable IT systems. Finally, reliance on third-party operators introduces risks related to vehicle condition and potential liability for client losses.

The company faces risks related to its aging vehicle fleet, which may lead to increased operating and maintenance costs if expansion or upgrades are not undertaken. The company is subject to various laws and government regulations, and failure to comply with statutory requirements could result in fines or sanctions. There is also a dependency on third parties for equipment and maintenance, and uncertainty exists regarding the supply of necessary materials. Furthermore, there are concerns about the reliability of third-party vehicle hiring, which could disrupt the customer base. The company has also faced past discrepancies and delays in filing various tax returns, leading to financial penalties.

The company faces several risks related to the transportation of goods, including the possibility of violating regulations due to the lack of independent verification of contents. There are significant financial risks stemming from loan agreements, where the default of the company could trigger obligations for its promoters and impact lenders' ability to service their debts. Furthermore, financing agreements impose covenants that limit operational flexibility, and there is a risk of lenders accelerating repayments or terminating facilities. The company also faces risks related to employee attrition, which can lead to loss of expertise, decreased productivity, and damage to relationships. Operational risks include the potential inability to manage growth effectively, execution failures, and susceptibility to macroeconomic factors or competition. Finally, there are concerns regarding adverse publicity, potential related party transactions, and liabilities arising from statutory penalties.

This section details various risks across several domains. Risks include potential issues with management interest in the company due to compensation, uncertainty in achieving business objectives due to sourcing difficulties, and the possibility that financial results will deviate from projections. There are also concerns about the reliability of internal controls and the ability to implement business strategies effectively against changing regulations. Furthermore, risks related to the issuance of equity shares involve potential disputes over fund utilization, volatility in the issue price, and market development issues. The company faces external risks such as changes in Indian laws, market volatility, and potential liabilities from product defects or customer dependency.

The risk factors outlined in this section cover various potential threats to the company and the broader business environment. These include risks from natural calamities, terrorist attacks, and civil unrest, which could negatively impact the business and financial condition. There are also significant risks related to changes in tax laws and regulations, political instability, and the potential for adverse interpretations or implementation of existing laws. Furthermore, global economic and political conditions, as well as risks associated with financing, foreign capital raising, and environmental regulations, are highlighted as potential threats to operations and profitability.

This section primarily provides a summary of the company's financial statements, detailing the movement in various financial metrics across different reporting periods. It includes tables summarizing shareholders' funds, non-current liabilities, assets, and profit and loss figures. Furthermore, it outlines the corporate structure, including details about the company's incorporation, registration numbers, and the board of directors. It also specifies the roles and contact information for the Company Secretary and Compliance Officer.

This section details various aspects related to the issuance process, including the identification of professional service providers and the procedures for the public offering. It outlines the details of the Statutory Auditors, the bankers to the issue, and various regulatory requirements concerning the application process, such as the use of ASBA or UPI mechanisms. Furthermore, it specifies the timelines for the bid/issue program, the process for withdrawal of the issue, and the conditions under which the final listing and trading approvals will be sought.

This section details the underwriting and market-making arrangements for the issue. It outlines the commitments made by the Company and the Book Running Lead Manager, including the allocation of equity shares to different underwriters. Furthermore, it specifies the obligations of the Market Maker regarding trading, including providing 2-way quotes, minimum quote depth, and inventory management. The section also discusses potential penalties and the applicability of various price band limits based on the issue size.