DRS Dilip Roadlines Ltd. (Agarwal packers and Movers) IPO Closes on 30th Nov: Should you Invest?

DRS Dilip Roadlines Ltd. (Agarwal Packers & Movers IPO) is raising Rs.31.50 crore through the issue of 4,200,000 Equity Shares. The company is into the business of providing high-quality logistics services that includes Transportation, Packing & Moving and Warehousing.

The company’s packing and moving business is carried under brand name of ‘Agarwal Packers and Movers’, which has become renowned name in household relocation across the country.

Agarwal Packers and Movers

The company has established its brand name for household relocation with pan India presence.

As on July 15, 2018, they were operating and owned a fleet of 301 trucks in the name of their Company, have 199 vehicles from there group and have the capacity to hire 450 vehicles. They operate through different types of closed container trucks on the basis of size and capacities.

The variety of goods transportation vehicles in their fleet also enables the company to serve a diverse mix of consignments. Further, for packing and moving services the company owns composite container vehicle specially designed to suit the household shifting called ‘CHAPP VAN’ (Car, Households, Artifacts, Plants and Pets). This new-concept composite container vehicle supports transport of Car, Household, Artifacts, Plants, and Pets all in one.

The company has strong customer base and has some of the biggest name in the client list.

Purpose of the DRS IPO

The funds raised from the Agarwal Packers & Movers IPO will be used for:

• Repayment of Unsecured Loans – INR 17.50 crore
• Setting up additional Warehouse in the state of Telangana – INR 5.00 crore
• Acquiring Additional Branch for Expansion of business – INR 1.50 crore
• Part repayment of Cash Credit facilities – INR 3 crore
• Part repayment of Term Loans – INR 3 crore
• General Corporate Purposes – INR 0.90 crore
• Issue Expenses – INR 0.60 crore

Other IPO Details

• Issue Open: November 27, 2018 – November 30, 2018
• Issue Type: Fixed Price Issue IPO
• Issue Size: 4,200,000 Equity Shares of Rs 10 aggregating up to Rs 31.50 Cr
• Issue Price: Rs 75 Per Equity Share
• Market Lot: 1600 Shares
• Minimum Order Quantity: 1600 Shares
• Listing At: NSE Emerge SME Platform

Should you Invest?

Revenue from operations for the FY16, FY17 and FY 18 are 15,302.34 lakhs,14,165.40 lakhs, and 14,248.65 lakhs respectively. The company has delivered the Net Profit after tax of 50.00 lakhs in FY 16, 108.18 lakhs in FY 17 and 345.39 lakhs in FY 18. However, the company`s debt to equity ratio as on June 30, 2018 is 4.89, which is very high. The investors may subscribe the offer with long term view.

 

Disclaimer: This is strictly author’s personal opinion. Investor’s are advised to perform their own research before investing.