Established in the year 2000, the Company embarked on its journey as a proprietorship under

the visionary guidance of its promoter, Rajen Hasmukhlal Shah. In 2003, responding to market
demands and seizing business opportunities in the logistics and freight forwarding industry, the
promoter incorporated and initiated the freight forwarding business under the name "SJ
Logistics (India) Private Limited."

In the fiscal year 2023, S J Logistics efficiently processed over 3,100 bills of lading, reaching
diverse destinations worldwide. The company has further solidified its global footprint through
cooperative and agency agreements with entities in countries such as Ecuador, Brazil, Chile,
Peru, the United States of America, Hong Kong, Paraguay, Bolivia, China, and others.

SJA Logisol India Private Limited ("SJALIPL") and S. J. L. Group (Singapore) Pte. Ltd. stand as
the two subsidiaries of S J Logistics. SJA Logisol India Private Limited primarily engages in
providing logistics and transportation services, contributing to the comprehensive suite of
solutions offered by the parent company. These strategic expansions and service
enhancements underscore S J Logistics' commitment to excellence in the dynamic realm of
logistics and supply chain management.

What does the company do?

The company has consistently evolved, expanding its presence, diversifying its service
offerings, and enhancing its capabilities. The range of services has grown to encompass not
only freight forwarding but also multimodal transportation, regulatory compliance services such
as customs clearance, and various associated services.

Notably, the company has demonstrated proficiency in handling project cargo, requiring
meticulous preparation and technological expertise. This specialized service involves
addressing specific client needs for transporting large, heavy, valuable, or critical cargo such as
power plants, excavators, transmission towers, etc. across different locations, employing a
variety of transportation methods. Turnkey contracts are typically utilized for transporting
oversized, over-dimensioned, critical, or high-value cargo.
The S J Logistics IPO date is slated to be open for subscription from December 12, 2023, to
December 14, 2023. This NSE SME IPO follows a Book Built Issue IPO.

The S J Logistics IPO price is fixed at Rs.121 to Rs.125 per share. The upcoming NSE SME
IPO will be listed on December 19, 2023.

The total issue size of this IPO amounts to Rs.48.00 CR. Within this total issue, 35% is issued to
retail investors.

S J Logistics (India) Ltd has allocated 5.03% of the issue size for the market makers to
the issue, Hem Finlease Private Ltd. The net offer (net of market maker allocation) will
be divided between the qualified institutional buyers (QIBs), retail investors and the HNI
/ NII investors. The breakdown of the overall IPO of S J Logistics (India) Ltd in terms of
the allocation to various categories is captured in the table below.
Market Maker 1,93,000 shares (5.03% of total issue
Shares size)
 QIB Shares Offered 18,22,000 shares (47.45% of total issue
size)

NII (HNI) Shares 5,48,000 shares (14.27% of total issue

Offered size)

Retail Shares Offered 12,77,000 shares (33.25% of total issue

size)

Total Shares Offered 38,40,000 shares (100.00% of total issue

size)

The issue opens for subscription on 12th December 2023 and closes for subscription on
14th December 2023 (both days inclusive). The basis of allotment will be finalized on
15th December 2023 and the refunds will be initiated on 18th December 2023. In
addition, the demat credits are expected to happen on 18th December 2023 and the
stock is scheduled to also list on 19th December 2023 on the NSE SME segment. This
is the segment, in contrast to the mainboard, where IPOs of small and medium
enterprises (SMEs) are incubated.

For a better understanding, here’s a SWOT Analysis

of S J Logistics

STRENGTHS WEAKNESSES
Strong network:
Extensive network of
warehouses and
transportation
infrastructure across India.
Diversified client base:
Serves clients across
various industries, reducing
dependence on any single
sector.
Experienced
management: Led by a
team with extensive
experience in the logistics
industry.
Strong financials:
Consistent revenue and
profit growth over the past
three years.
OPPORTUNITIES
Limited operating history:
Relatively new company
compared to established
players in the industry.
Key customer dependence:
A few key customers
contribute significantly to
revenue, making the
company vulnerable to their
business decisions.
High debt level: High
debt-to-equity ratio,
increasing financial risks.
THREATS
 Economic slowdown: An Economic slowdown: An
economic downturn can economic downturn can
negatively impact demand negatively impact demand
for logistics services. for logistics services.

Fuel price fluctuations: Fuel price fluctuations:

Fluctuations in fuel prices Fluctuations in fuel prices can
can significantly impact significantly impact operating
operating costs. costs.

Competition: Intense Competition: Intense

competition from
established players and
new entrants.
Regulatory changes:
Changes in government
regulations regarding the
logistics industry can
impact operations and
profitability.
competition from established
players and new entrants.
Regulatory changes:
Changes in government
regulations regarding the
logistics industry can impact
operations and profitability.

Company Financial
The company's total assets increased to 10,541.07 Lakhs by Sep 30, FY 23,
with total revenue at 10,338.56 Lakhs. The profit after tax (PAT) was 931.07
Lakhs, and the net worth reached 5,640.93 Lakhs, comprising reserves & surplus
of 4,576.62 Lakhs.

(Amount in Lakhs)
Period Sep 30 FY 23 FY 23 FY 22

Total Assets 10,541.07 8,104.32 5,062.51

Total Revenue 10,338.56 13,500.99 10,395.18

PAT 931.07 761.56 172.99

Net worth 5,640.93 3,120.32 -

Reserve & Surplus 4,576.62 2,825.15 1,342.14

Total Borrowings 2,952.40 3,356.00 -

Revenue Distribution Industry Wise

The company's revenue sources for September 30, FY 23, were mainly from
Yarn and Yarn commodities (47.20%), followed by Project Cargo (38.64%), and
Other Commodities (13.35%).

( % age)

Particulars Sep 30 F.Y. 23 F.Y 23 F.Y 22

Yarn and Yarn commodities 47.20 68.19 74.65

ODC (over dimension cargo) 0.81 1.47 0.35

Project Cargo 38.64 25.54 10.17

Other Commodities 13.35 4.79 14.83

Total 100.00 100.00 100.00

Revenue By operations
(amount in Lakhs)

Particulars Sep 30 F.Y. 23 FY 23 FY 22

Revenue from operations 10309.45 13431.17 10362.43

Other Income 29.11 69.82 168.75

Total 10338.56 13500.99 10531.18

The objective of the Issue

The company intends to use the net proceeds for the following objectives.

● Repayment or partial/full pre-payment of specific company borrowings

● Addressing working capital requirements
● General corporate purposes

Promoters and Management of S J Logistics IPO

1. Rajen Hasmukhlal Shah

Pre-issue Promoter Shareholding 67.55%

Post-issue Promoter Shareholding 49.64%

S J Logistics IPO Lead Managers

● Hem Securities Limited

Peers of S J Logistics IPO

When compared to its peers, S J Logistics demonstrates a favourable balance,
boasting a P/E of 14.14, RoNW of 24.41%, and EPS of Rs. 8.84.

Name of the company P/E RoNW (%) EPS (Basic)

(Rs.)

S J Logistics (India) Limited 14.14 24.41 8.84

Cargotrans Maritime Limited 16.64 18.45 5.74

Patel Integrated Logistics 14.07 4.16 1.13

Limited

Tiger Logistics (India) Limited 18.12 23.78 21.94

Total Transport Systems 78.70 6.75 3.47

Limited

Conclusion
S J Logistics, with its global presence, diverse service offerings, and experienced
leadership, presents a promising investment opportunity. The company's
financials, strengths, and strategic expansions contribute to its positive outlook.
However, potential investors should consider the IPO's weaknesses, such as
heavy reliance on the U.S. market and regulatory challenges.