Upcoming IPO: Yatayat Corporation files DRHP with Sebi to raise funds via share sale

Upcoming IPO: Gujarat-based logistics and transportation services company Yatayat Corporation filed its Draft Red Herring Prospectus (DRHP) with Securities and Exchange Board of India (SEBI), to launch its initial public offering (IPO) to raise funds.

As per the DRHP, the proposed IPO will consist of a fresh issue of up to 77.00 lakh equity shares and an offer for sale (OFS) of up to 56.00 lakh equity shares by a promoter selling shareholder. This takes the total issue size to up to 1.33 crore equity shares.

The company may also consider a pre-IPO placement of equity shares aggregating up to ₹100 crore, at its discretion. If such a placement is completed, the size of the fresh issue will be reduced, in accordance with regulatory requirements.

Yatayat Corporation has stated that the proceeds from the fresh issue will be primarily used to meet working capital requirements and for general corporate purposes. The equity shares are proposed to be listed on BSE and NSE.

Unistone Capital has been appointed as the sole book-running lead manager to the issue.

Yatayat Corporation: What the company does

Yatayat Corporation operates in the road logistics segment, with its core business focused on Full Truck Load (FTL) transportation, offering point-to-point freight movement across major logistics corridors in India. The company operates through 34 branches and one warehouse across 12 states, supporting its nationwide logistics operations.

One of the key features of Yatayat’s platform is its cross-border export capability, particularly between India and Bangladesh. The company provides committed and express delivery services from any part of India to Benapole, Bangladesh. Its service portfolio also includes Part Truck Cargo Services, Express Freight, Over Dimensional Cargo Freight and Multimodal Freight services, along with Custom House Agent and Freight Forwarding services through its wholly owned subsidiary.

Yatayat follows an asset-light business model, maintaining a limited owned fleet while leveraging a large network of third-party fleet owners and transport operators. As an IBA-approved Good Transport Agency, the company operates through a hybrid model that combines owned vehicles and third-party fleets, allowing it to scale operations while managing capital intensity.

Yatayat Corporation: Clients, volumes and financial performance

The company serves clients across multiple sectors, including Agriculture and Agri-Inputs, Building Materials and Construction, Chemicals and Allied Industries, Energy and Power, Engineering and Industrial Manufacturing, IT and Technology Solutions, Metals and Mining, and Textiles and Apparel, along with other industrial and consumer segments.

The volume of goods transported by the company increased from 5.7 lakh metric tonnes in FY23 to 11.03 lakh metric tonnes in FY25. For the period ended June 30, 2025, Yatayat handled 2.74 lakh metric tonnes of cargo.

On the financial front, Yatayat Corporation reported revenue from operations of ₹448.13 crore in FY25, compared with ₹348.34 crore in FY24 and ₹269.09 crore in FY23. Profit after tax rose to ₹30.01 crore in FY25, up from ₹14.95 crore in FY24 and ₹6.40 crore in FY23, while profit margins improved to 6.70% in FY25 from 4.29% in FY24.

For the three-month period ended June 30, 2025, the company reported revenue of ₹119.68 crore and profit after tax of ₹7.83 crore. The DRHP also highlighted that the global logistics market expanded from $10.9 trillion in 2019 and is projected to reach $21.3 trillion by 2030, underlining strong long-term demand drivers for the sector.