vrl logistics limited ipo

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Issue Details Objects of the issue 1. Purchase of goods transportation vehicles; 2. Repayment/Pre-payment of certain borrowings ; and 3. General corporate purposes. Offer 17,116,000 Equity Shares of Rs 10 and Fresh issue of 117 crore Issue Size Rs. 450.8-467.9 crore Face value Rs. 10 Per Equity Share Issue Price Rs. 195 - Rs. 205 Per Equity Share Market Lot 65 Shares Minimum Order Quantity 65 Shares Listing at BSE, NSE Issue Opens: April 15, 2015 – April 17 2015 QIB 50% of Net Issue Offer NIB 15% of Net Issue Offer Retail 35% of Net Issue Offer IPO-Note Rs. 195 - Rs. 205 Per Equity Sh Click Here s. e. 5 VRL Logistics L hare Recommendation: Subscribe(I VRL Logistics Ltd (VRL) is one of the leading p parcel delivery service provider. It owns and commercial vehicles in the private sector in India. and priority parcel delivery (less than truckload full-truckload (“FTL”) services through its widesp 28 States and four Union Territories across I infrastructure for the goods transportation busine comprised 624 branches (comprising 604 leas branches) and 346 agencies across India, and of suc branches and seven owned branches) served as str operations. Key Highlights The company has generated revenue of Rs 71 March 2010 and Rs 1503.7 crore for the y company has added revenue of Rs.1279.4 for profit for the 9 months ended Dec 2014 was Rs VRL's goods transportation service busines industries, including the fast moving consumer as other industries including food, textiles, pharmaceutical products, rubber, plastics, me glass, automotive parts and machinery. The company operates through a hub-and-s enables to transport various parcel sizes an access to multiple destinations for booking extensive network enables the company to prov even remote areas in India. Company is planning to expand its fleet by ad of Rs 67 crore. The company currently opera buses. Risk & Concerns o Inability to pass on any increase in fuel costs & o Legal proceedings against the company o Business is dependent on Road network o Interruption of operations in Hubbali facility co o Competition from existing and new players o Risk of accidents and damage or theft of cargo o Low freight volumes and passenger occupancy o Secured Long term and Short Term borrowings Outlook: VRL Logistics is a pan-India surface logistics provider. It provides general parcel and priority pa truckload services through its network in 28 stat Except the goods and transportation business the c bus services across the states of Karnataka, Maha Telengana, Tamilnadu, Gujrat and Rajasthan. A company owned and operated 467 buses including bus operations in fiscal 2012, 2013, 2014 and the 2014 was Rs 217.8 Crore, Rs 284.8 crore, Rs 30 respectively, representing 19.27%, 21.49%, 20.63% total revenue from operations in such periods. A company’s goods transportation fleet included 3 EPS for FY 2014 is 7.21 and last year’s average is in between 27 to 29 which is justified when comp and Blue Dart Express Limited. With consistent pr the issue seems promising. Hence we recommend investment purpose. e to Invest in VRL IPO Limited Investment Purpose) pan-India surface logistics and operates the largest fleet of . VRL provides general parcel services, “LTL”), courier and pread transportation network in India. Company’s operational ess as of December 31, 2014 sed branches and 20 owned ch 624 branches, 48 (41 leased rategic transshipment hubs for 14.61 crore for the year ended year ended March 2014. The 9 months ended Dec 2014.The s.71.7 crore. ss serves a broad range of r goods (FMCG) sector as well apparel, furniture, appliances, etal and metal products, wood, spoke operating model which nd provide its customers with g and delivery of goods. Its vide "last mile" connectivity to dding 248 new trucks at a cost ates close to 4,000 trucks and & other expenses ould effect maintenance activities due to a s and parcel delivery service arcel delivery, courier and full- tes and four union territories. company is also provide luxury arashtra, Goa, Andhra Pradesh, As of September 30, 2014 the g 48 staff buses. Revenue from e three months ended June 30, 08.1 crore and Rs 95.9 crore , % and 23.33%, respectively, of As of December 31, 2014, the 3,546 owned vehicles. Diluted s 6.99, Hence the PE should be pared to peers like Gati limited rofits and good revenue growth d to “Subscribe” the issue, for

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Page 1: VRL Logistics Limited IPO

Issue Details

Objects of the issue

1. Purchase of goodstransportation vehicles;2. Repayment/Pre-payment of certain borrowings ; and3. General corporate purposes.

Offer17,116,000 Equity Shares of Rs. 10 and Fresh issue of 117 crore.

Issue Size Rs. 450.8-467.9 crore

Face value Rs. 10 Per Equity Share

Issue PriceRs. 195 - Rs. 205 Per Equity Share

Market Lot 65 Shares

Minimum Order Quantity 65 Shares

Listing at BSE, NSE

Issue Opens: April 15, 2015 – April 17 2015

QIB 50% of Net Issue Offer NIB 15% of Net Issue Offer Retail 35% of Net Issue Offer

IPO-Note

Rs. 195 - Rs. 205 Per Equity Share

Click Here to Invest in

Shares of Rs. of 117 crore.

15

VRL Logistics Limited

Per Equity Share Recommendation: Subscribe(Investment Purpose)

VRL Logistics Ltd (VRL) is one of the leading panparcel delivery service provider. It owns and operates the largest fleet of commercial vehicles in the private sector in India. VRL provides general parcel and priority parcel delivery (less than truckload services, “LTL”), courier and full-truckload (“FTL”) services through its widespread transportation network in 28 States and four Union Territories across India. Company’s operational infrastructure for the goods transportation business as of December 31, 2014 comprised 624 branches (comprising 604 leased branches and 20 owned branches) and 346 agencies across India, and of such 624 branches, 48 (41 leasedbranches and seven owned branches) served as strategic transshipment hubs for operations.Key Highlights The company has generated revenue of Rs 714.61 crore for the year

March 2010 and Rs 1503.7 crore for the yearcompany has added revenue of Rs.1279.4 for 9 months ended profit for the 9 months ended Dec 2014 was Rs.

VRL's goods transportation service business serves a broad range of industries, including the fast moving consumer goods (FMCG) sector as well as other industries including food, textiles, apparel, furniture, appliances, pharmaceutical products, rubber, plastics, metal and metal products, wood, glass, automotive parts and machinery.

The company operates through a hub-and-spoke operating model which enables to transport various parcel sizes and provide its customers with access to multiple destinations for booking and delivery of goods. Its extensive network enables the company to provide "last mile" connectivity to even remote areas in India.

Company is planning to expand its fleet by adding 248 new trucks at a cost of Rs 67 crore. The company currently operates close to 4,000 trucks and buses.

Risk & Concernso Inability to pass on any increase in fuel costs & other expenseso Legal proceedings against the companyo Business is dependent on Road networko Interruption of operations in Hubbali facility could effect maintenance activitieso Competition from existing and new playerso Risk of accidents and damage or theft of cargoo Low freight volumes and passenger occupancy due to ao Secured Long term and Short Term borrowings

Outlook:VRL Logistics is a pan-India surface logistics and parcel delivery service provider. It provides general parcel and priority parcel delivery, courier and fulltruckload services through its network in 28 states and four union territories.Except the goods and transportation business the companybus services across the states of Karnataka, MaharashtraTelengana, Tamilnadu, Gujrat and Rajasthan. As of September 30, 2014company owned and operated 467 buses including bus operations in fiscal 2012, 2013, 2014 and the three months ended June 30, 2014 was Rs 217.8 Crore, Rs 284.8 crore, Rs 308.1 crorerespectively, representing 19.27%, 21.49%, 20.63% and 23.total revenue from operations in such periods. As of December 31, 2014, the company’s goods transportation fleet included 3,546 owned vehicles. EPS for FY 2014 is 7.21 and last year’s average is 6.99, Hence the PE should be in between 27 to 29 which is justified when compared to peers like Gati limited and Blue Dart Express Limited. With consistent profits and good revenue growth the issue seems promising. Hence we recommend to “Subscribe” the issue, for investment purpose.

Click Here to Invest in VRL IPO

Limited

(Investment Purpose)

VRL Logistics Ltd (VRL) is one of the leading pan-India surface logistics and parcel delivery service provider. It owns and operates the largest fleet of

private sector in India. VRL provides general parcel and priority parcel delivery (less than truckload services, “LTL”), courier and

truckload (“FTL”) services through its widespread transportation network in s India. Company’s operational

infrastructure for the goods transportation business as of December 31, 2014 comprised 624 branches (comprising 604 leased branches and 20 owned branches) and 346 agencies across India, and of such 624 branches, 48 (41 leasedbranches and seven owned branches) served as strategic transshipment hubs for

714.61 crore for the year endedfor the year ended March 2014. The

for 9 months ended Dec 2014.The profit for the 9 months ended Dec 2014 was Rs.71.7 crore.VRL's goods transportation service business serves a broad range of industries, including the fast moving consumer goods (FMCG) sector as well as other industries including food, textiles, apparel, furniture, appliances,

astics, metal and metal products, wood,

spoke operating model which enables to transport various parcel sizes and provide its customers with

booking and delivery of goods. Its extensive network enables the company to provide "last mile" connectivity to

is planning to expand its fleet by adding 248 new trucks at a cost of Rs 67 crore. The company currently operates close to 4,000 trucks and

Inability to pass on any increase in fuel costs & other expenses

Interruption of operations in Hubbali facility could effect maintenance activities

ccupancy due to aSecured Long term and Short Term borrowings

India surface logistics and parcel delivery service provider. It provides general parcel and priority parcel delivery, courier and full-

h its network in 28 states and four union territories.company is also provide luxury

, Maharashtra, Goa, Andhra Pradesh, As of September 30, 2014 the

including 48 staff buses. Revenue frombus operations in fiscal 2012, 2013, 2014 and the three months ended June 30,

08.1 crore and Rs 95.9 crore , respectively, representing 19.27%, 21.49%, 20.63% and 23.33%, respectively, of

As of December 31, 2014, the included 3,546 owned vehicles. Diluted

EPS for FY 2014 is 7.21 and last year’s average is 6.99, Hence the PE should be which is justified when compared to peers like Gati limited

profits and good revenue growth recommend to “Subscribe” the issue, for

Page 2: VRL Logistics Limited IPO

Source: RHDP

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