Deccan Transcon Leasing IPO to open for subscription tomorrow; price band set at ₹102-108 apiece

Deccan Transcon Leasing IPO will open for subscription on Friday, September 13, and will close on Wednesday, September 18. The issue's price band has been fixed in the range of ₹102 to ₹108 per share. The IPO lot size for Deccan Transcon Leasing IPO is 1,200 shares.

The firm distributes equity shares among different categories, including Qualified Institutional Buyer (QIB) with an allocation of up to 30,12,000 equity shares, Non-Institutional Investors (NII) with an allocation of up to 9,03,600 equity shares, Retail Individual Investors (RII) with an allocation of up to 21,08,400 equity shares, and Market Maker with an allocation of up to 3,30,000 equity shares.

Deccan Transcon Leasing Limited was established in February 2007 and provides clients in a variety of industries with supply chain and logistical solutions as well as leased tank containers.

In addition to domestic tank container logistics, tank fleet management, customs clearance and transportation, and Non-Vessel Operating Common Carriers (NVOCC) services, the firm provides full freight and shipping solutions.

As per red herring prospectus (RHP), the company's listed peers are Lancer Container Lines Ltd (with a P/E of 17.66), and S J Logistics ( India ) Ltd (with a P/E of 29.01).

Between March 31, 2024, and March 31, 2023, Deccan Transcon Leasing Limited's profit after tax (PAT) increased by 38% while its revenue declined by -15%.

Deccan Transcon Leasing IPO details

Deccan Transcon Leasing IPO, which is worth about ₹65.06 crore, consists of a fresh issue of 5,524,000 equity shares with a face value of ₹10, and offer-for-sale component of 500,000 equity shares.

The company plans to use the proceeds from the offer to finance the purchase of Tank Containers for capital expenditure requirements, support the working capital needs of the Company, and for general corporate purposes.

“The net proceeds from this IPO will be strategically allocated for our working capital, support essential capital expenditures, and enhance our fleet of tank containers. These investments will enable us to meet the growing demands of our diverse client base and continue delivering exceptional value across various sectors, particularly in the transportation of bulk liquids and hazardous chemicals. This IPO will not only strengthen our operational capabilities but also contribute to our long-term growth,” said Jaidev Menon Parath, Chairman & Whole Time Director, of Deccan Transcon Leasing Ltd.

Unistone Capital Pvt Ltd serves as the book running lead manager for the Deccan Transcon Leasing IPO, with Link Intime India Private Ltd acting as the issue's registrar. Giriraj Stock Broking is the market maker for the Deccan Transcon Leasing IPO.

Deccan Transcon Leasing IPO GMP today

Deccan Transcon Leasing IPO GMP today or grey market premium is +30. This indicates Deccan Transcon Leasing share price were trading at a premium of ₹30 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Deccan Transcon Leasing share price was indicated at ₹138 apiece, which is 27.78% higher than the IPO price of ₹108

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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