Total Transport Systems IPO oversubscribed by 130 Times on strong Promoters' pedigree

Posted by Daily Shipping Times on 31-07-2017        Tweet

...Creates record of highest mobilisation of funds on NSE Emerge platform

MUMBAI: The Initial Public Offering (IPO) of the transport major Total Transport Systems was oversubscribed by whopping 130 times by investors. With this, the company has not only made a record of attracting highest number of Share applications but also created a record for highest mobilisation of funds on NSE Emerge platform. NSE Emerge allows emerging entrepreneurs to raise capital from Capital Market to fund their expansion and growth.

The company had entered the capital market with the issue of 37,80,000 shares at a fixed price of Rs 45 per share of face value of Rs 10 each, including premium of Rs 35 per share. The total number of shares applied till the end of issue close stood at 49,26,51,000 shares. 

This huge response from the investment community is largely due to the strong pedigree enjoyed by its founding Promoters in the logistics industry. Total Transport Systems Ltd (TTSL), is promoted by Mr. Makarand Prabhakar Pradhan, Mr. Sanjiv Arvind Potnis and Mr. Shrikant Damodar Nibandhe.

Incidentally the promoters of the company, Mr. Sanjiv Potnis, is also the Chairman of Bombay Overseas Freight Brokers Association (BOFBA) while Mr. Makarand Pradhan is the Chairman of Consolidators Association of India (CAI).

Total Transport specialises in less than container load (LCL) and cargo consolidation, wherein small shipment is consolidated and moved to over 1,100 destinations worldwide with the network partners at respective hubs. It offers both the services combined with freight forwarding that includes arranging of all pre-shipment activities like export inspection, excise inspection, container survey, cargo pickup and cargo stuffing. Moreover, they offer consolidation for exports and deconsolidation for imports.

The company reported a healthy top line of over Rs 210 crore of revenues with profit after tax (PAT) of Rs 5.78 crore in the financial year 2016-17. With an asset light model and debt largely in the form of working capital finance, the return on capital employed (ROCE) and return on net worth (RONW) stood at 48 per cent and 41 per cent, respectively.