Apana Logistics Ltd. IPO

Apana Logistics 

• Apana Logistics is coming out with an initial public offering (IPO) of 56,90,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 60 per equity share.
• The issue will open on September 07, 2026 and will close on September 09, 2026.
• The shares will be listed on SME Platform of BSE.
• The share is priced at 6.0 times higher to its face value of Rs 10.
• Book running lead manager to the issue is Corporate Makers Capital.
• Compliance Officer for the issue is Kiran Joshi.

Profile of the company

Apana Logistics 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 and includes, Container handling at CFS/ICD/port, road transportation, cargo handling at third-party warehouses, and operation & maintenance of trucks-trailers (TT). The company also holds experience in operations and maintenance services to ensure efficient handling of reach stackers. Its key services include container handling, operation and management of truck-trailers. 

It 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, enables it to deliver cost and time effective solutions for its customers. Its experienced management team has required skills, which enable it to provide these services to its customer efficiently. It has maintained and owned fleet size of Thirty-Three truck-trailers, five reach stackers and two cranes. 

Its promoter and management have combined industry experience of more than 34 years in logistics industry. Their knowledge, guidance and experience in this industry have been invaluable for the growth and development of the company. 

Proceed is being used for:

• Funding capital expenditure requirement of the company towards purchase of reach stackers (Vehicles).
• Meeting out the general corporate purposes.

Industry Overview

Logistics sector in India is transforming at an unprecedent pace due to key factors like changing global and local trade dynamics, growing manufacturing industry, expansion of eCommerce market, sustainability pressures, and large-scale digitisation of supply chain. Sector is breaking away from traditional brick and mortar approach to a more technology enabled sector, enabling businesses of all sizes and individuals from diverse backgrounds to take part in this dynamic and economically important sector. 

Recognising the strategic importance of Logistics sector and the transformational impact it can have on the overall economy, Government of India has adopted a comprehensive and synergised, ‘whole of Government’ approach to ensure that both demand and supply side fundamentals of the sector are viewed in their entirety with an end-to-end perspective. Traditional sectoral approach has been replaced by a renewed ‘whole of Government’ and ‘data driven’ approach leveraging the power of technology to ensure integrated development of logistics sector in the country.

Meanwhile, road transport is the dominant mode of transport in India, both in terms of traffic share and contribution to the national economy. Apart from facilitating the movement of goods and passengers, road transport plays a key role in promoting equitable socioeconomic development across regions of the country. It also plays a vital role in social and economic integration and development of the country. Easy accessibility, flexibility of operations, door-to-door service and reliability have earned road transport a greater significance in both passenger and freight traffic vis-a-vis other modes of transport. The Ministry is responsible for the formulation of broad policies relating to regulation of road transport in the country, besides making/monitoring arrangements for vehicular traffic to and from neighboring countries.

Pros and strengths

Diverse service offerings and customer base: Its service offerings are diverse covering various aspects of the logistic sector which ranges from container handling at CFS/ICD/port, road transportation, cargo handling at third-party warehouses, and repairs & maintenance of trucks-trailers. These diverse offerings would help it in up-selling and down selling its services not only to its customer but also to its vendors. For instance, it would be able to provide its repairs, operations & maintenance of trucks-trailers services to its existing customers being CFS/ICD owners on a competitive basis leveraging on its existing manpower. 

Ability to participate in tenders: Participation in tenders related to the nature of business requires it to have necessary financial, technical and asset-based requirements. Further, the tender participant is also required to provide satisfactory performance / experience certificates from the contracts executed or under execution by such participants. Its extensive work experience in the industry provides it with the necessary track record to participate and qualify in tenders floated by government and semi-government entities namely, CFS, ports and ICDs. Such capability would help it in participating in new tenders and re-tenders of its customers.

Assured quality services: As it adheres to the quality standards required as per industry norms and in pursuant to contracts executed with its clients, it is capable of providing quality services at competitive prices to its customers resulting into wining tenders and seeking repetitive work orders from them. These certificates provide assurance for its services to its customers for the quality and timeliness of its services. Its focus on quality has enabled it to sustain and grow its business model to benefit its customers. 

Risks and concerns

Significant revenue reliance on limited numbers of customers: It depends on a limited number of key customers for a majority of its revenues, which exposes it to a high risk of customer concentration. During the Fiscal 2026, Fiscal 2025 and Fiscal 2024, its revenues from top 5 customers amounted to Rs 3,017.01 lakh, Rs 2,118.79 lakh and Rs 1,902.38 lakh respectively, which constituted 97.79%, 98.85% and 94.66% respectively, of its total revenues from operations. Fluctuations in the performance of the industries in which certain of its customers operate or the logistic sector in general, may result in a loss of customers, a decrease in the volume of work it undertakes or the price at which it offers its services. 

Reliance on third-party service providers: The intermediaries comprising vehicle and heavy equipment suppliers, cargo carriers, vendors, brokers, etc. form an integral part of its business operations and help it in providing its services. The performance of its third-party service providers and vendors may not meet the relevant terms and conditions or performance parameters, which could result in disruption of its business operations and a deterioration in its brand value. Further, certain assets necessary for its operations such as vehicles and heavy equipment are obtained on a contract or on spot contract basis, including its group companies. It cannot assure that it will continue to receive an uninterrupted supply of these transport assets to it in a timely manner or in quantities or prices that are commercially acceptable to it, or at all. Events beyond its control may also affect the cost or availability of transport assets or related equipment. Hiring additional ad hoc third-party transport assets also significantly increases its operational expenses, which could adversely affect its cost structure and in turn its profitability.

Operational continuity dependent on functioning of vehicles, equipment: The services provided by the company are subject to operating risks, including but not limited to breakdown of the vehicles or accidents & mishaps which could affect its service providing capabilities. Though it takes all the possible measure to reduce the risk of any such breakdown, there may be events which may be beyond its control. While in the past, there have not been any notable incidents involving mishaps or major accidents, it cannot assure that these may not occur in the future. Further, it relies on third party service providers and any mishaps or accidents happening with these service providers may also affect its operations. Any consequential losses arising due to such events will affect its operations and financial condition.

Outlook

Apana Logistics 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 extensive work experience in the industry provides it with the necessary track record to participate and qualify in tenders floated by government and semi-government entities namely, CFS, ports and ICDs. Such capability would help it in participating in new tenders and re-tenders of its customers. On the concern side, it is dependent on the performance of industries in which its customers operate, particularly Container Freight Station (CFS) and Inland Container Depots (ICD), and fluctuations in the performance of such industries may result in a loss of such customers, a decrease in the volume of work it undertakes or the price at which it offer its services.

The company is coming out with an IPO of 56,90,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 60 per equity share to mobilize Rs 34.14 crore. On performance front, its revenue from operations increased by 43.93% to Rs 3,085.13 lakh for FY 2026 from Rs 2,143.50 lakh for FY 2025. Profit after tax has increased by 88.79% from Rs 310.65 lakh for FY 2025 to Rs 586.47 lakh for FY 2026.

Meanwhile, it intends to enhance its scope of engagement with existing customers by strengthening its existing service offerings, adding new service offerings, servicing newer geographies, providing value-added services and offering time and cost saving solutions. Going forward, expanding its customer base will help increase its revenues and margins. One of its key strategies is to leverage, through its sales and marketing team, its expertise in core segments and introduce practices from its learnings and experiences with existing customers in order to acquire new customers.