— By Dilip Davda
- The company is engaged in the business of providing logistics support for handling and transporting containers.
- Its order book stood at Rs. 80.35 cr. as of March 31, 2026.
- The company is operating in a highly competitive and fragmented segment.
- After static top and bottom lines for FY24 and FY25, it posted big surge in its performance, that raise eyebrows and concern over its sustainability.
- Based on its recent average financial data, the issue appears greedily priced.
- There is no harm in skipping this pricey offer from merchant banker, that is having poor track record.
ABOUT COMPANY:
Apana Logistics Ltd. (ALL) is engaged in the business of providing logistics support for handling and transportation of containers, wherein the fleet is inclusive of reach stackers, forklifts, truck-trailers (TT). Its service offering is diversified which include, Container handling at CFS/ICD/port, road transportation, cargo handling at third-party warehouses, and repair, operation & maintenance of trucks-trailers (TT).
The Company also holds experience in operations and maintenance services to ensure efficient handling of reach stackers. ALL’s key services include container handling, operation and management of truck-trailers. The company serves some of the top leading CFS/ICD/Port Operators in India. Its long-standing relationships with CFS, ICD’s and Ports and its experience in container handling through reach stackers, cargo handling and understanding of customers’ supply chain, regional market dynamics for transportation, enable it to deliver cost and time effective solutions for customers.
Its experienced management team has required skills, which enabling it to provide these services to customers efficiently. As on March 31, 2026, it has maintained and owned fleet size of Thirty-Three (33) truck-trailers, five (5) reach stackers and two (2) cranes. The company maintains an aggressive bidding strategy, active participation in tenders and leveraging its expertise to accommodate such projects simultaneously.
As of March 31, 2026, its order book stood at Rs. 80.35 cr., to be executed between March 2027 to March 31, 2030. As of June 30, 2026, it had 62 employees on its payroll.
ISSUE DETAILS/ CAPITAL HISTORY:
The company is coming out with its maiden IPO of 5690000 equity shares of Rs. 10 each at a fixed price of Rs. 60 per share to mobilize Rs. 34.14 cr. The minimum application to be made is for 4000 shares and in multiples of 2000 shares thereon, thereafter. The issue opens for subscription on September 07, 2026 and will close on September 09, 2026. The shares will be listed on BSE SME. The IPO constitute 32.50% of the post-IPO paid-up capital of the company. The company is spending Rs. 4.10 cr. for this IPO process, and from the net proceeds of the fresh issue, the company will utilize Rs. 25.00 cr. for capex on purchase of reach stackers, Rs. 5.04 cr. for general corporate purposes.
The IPO is solely lead managed by Corporate Makers Capital Ltd., while KFin Technologies Ltd. is the registrar to the issue. Prabhat financial Services Ltd. is the market maker. The issue is underwritten to the tune of 15.01% by Corporate Makers Capital and up to 84.99% by Prabhat Financial Services Ltd.
After issuing entire initial equity capital at par value, the company also issued bonus shares in the ratio of 9 for 1 in March 2020, and 5 for 1 in February 2025. The average cost of acquisition of shares by the promoters is Rs. NIL per share.
Post-IPO, company’s current paid-up equity capital of Rs. 11.82 cr. (11820000 equity shares) will stand enhanced to Rs. 17.51 cr. (17510000 equity shares). Based on the upper band of the IPO pricing, the company is looking for a market cap of Rs. 105.06 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted total income/ net profit, of Rs. 20.33 cr. / Rs. 3.00 cr. (FY24), Rs. 21.61 cr. / Rs. 3.11 cr. (FY25), Rs. 31.07 cr. / Rs. 5.87 cr. (FY26). The company posted surprised growth in its bottom lines for FY26, that not only surprises, but also raises concern over its sustainability going forward. Boosted bottom line for FY26 appears to be a window dressing to fetch fancy valuations for IPO. Rising trade receivables year-on-year, raise alarms. Its contingent liability stood at Rs. 0.71 cr. as of March 31, 2026.
For the last three fiscals, the company has reported an average EPS of Rs. 3.78 and an average RoNW of 29.62%. The issue is priced at a P/BV of 3.50 based on its NAV of Rs. 17.15 per share as of March 31, 2026, and at a P/BV of 1.93 based on its post-IPO NAV of Rs. 31.08 per share.
If we attribute FY26 super earnings to its post-IPO fully diluted paid-up equity capital, then the asking price is at a P/E of 17.14, and based on FY25 earnings, the P/E stands at 33.90. The issue appears greedily priced based on its recent average earnings.
The company has posted PAT Margins of 14.94% (FY24), 14.49% (FY25), 19.01% (FY26) and RoCE margins of 29.00%, 26.57%, 45.00%, respectively for referred periods.
DIVIDEND POLICY:
The company has not paid any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy, based on its financial performance and future prospects.
COMPARISON WITH LISTED PEERS:
As per the offer document, the company has shown Premier Roadlines, VRL Logistics, as its listed peers. They are currently trading at a P/E of 6.35, and 19.5 (as of September 04, 2026). However, they are not truly comparable on an apple-to-apple basis.
MERCHANT BANKER’S TRACL RECORD:
This is the 15th mandate from Corporate Makers Capital Ltd., in the last three fiscals (including the ongoing one). Out of the last 13 listings, 7 opened at discount, 4 at par, and the rest listed with a premium ranging from 4.35% to 53.38% on the listing date. The merchant banker has a poor track record.
CONCLUSION:
ALL is engaged in the business of providing logistics support for handling and transporting containers. Its order book stood at Rs. 80.35 cr. as of March 31, 2026. The company is operating in a highly competitive and fragmented segment. After static top and bottom lines for FY24 and FY25, it posted big surge in its performance, that raise eyebrows and concern over its sustainability. Based on its recent average financial data, the issue appears greedily priced. Merchant Banker has a poor track record so far. There is no harm in skipping this pricey offer.
Review By Dilip Davda on August, 2026
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
