Dhillon Freight Carrier coming with IPO to raise Rs 10.08 crore

Dhillon Freight Carrier

• Dhillon Freight Carrier is coming out with an initial public offering (IPO) of 14,00,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 72 per equity share.
• The issue will open on September 29, 2025 and will close on October 1, 2025.
• The shares will be listed on SME Platform of BSE.
• The share is priced at 7.2 times higher to its face value of Rs 10.
• Book running lead manager to the issue is Finshore Management Services.
• Compliance Officer for the issue is Sneha Agarwal.

Profile of the company

Founded in 2014, the company is engaged in providing logistics solutions to businesses, particularly road transportation. It is goods transport agency providing Parcel/Less than Truck-Load (LTL), Contract Logistics and Fleet Rental/Fleet Leasing services to different industries. It serves both B2B and B2C customers. It is an ISO 9001:2015 certified service provider who handle client requirements in a professional manner to ensure the highest degree of customer satisfaction.

Since inception, it has consistently been providing solutions powered by its own fleet vehicles. Its present in-house fleet strength is about 62 vehicles. The company operates majorly across West Bengal, Bihar, Delhi and Uttar Pradesh, providing reliable and efficient logistics solutions to businesses nationwide. As on date, it operates through an established network of 22 booking offices, pickup facilities, warehouses, delivery offices and through agency network etc.

Proceed is being used for:

• Purchase of goods transportation vehicles and its fabrication 
• General corporate purposes
• Meeting the issue expenses

Industry Overview

Logistics Industry is crucial to both enterprises and the economy. In today's interconnected world, shipping and logistics are at the heart of the economy, acting as vital gateways for international trade and business. A nation with a strong and effective logistics sector offers an efficient forward and reverse flow of goods and services, which eventually translates to fast-paced growth. The Indian logistics industry includes all inbound and outbound components of the manufacturing and service supply chains. Significant factors that will increase the demand for India's logistics sector include the country's anticipated GDP growth of $26 trillion by fiscal year 2048 ($6 trillion by 2030) and its objective to accelerate merchandise exports to $1 trillion by 2030.

The Indian logistics market, valued at $107.16 billion (Rs 9 trillion) in FY23, is projected to grow significantly, reaching $159.54 billion (Rs 13.4 trillion) by FY28, with a compounded annual growth rate (CAGR) of 8-9%, according to a recent report by Motilal Oswal. This growth is driven by structural shifts, technological advancements, and government initiatives focused on reducing logistics costs and improving infrastructure. The National Logistics Policy, unveiled in September 2022, aims to optimize India’s logistics landscape by increasing the share of railways in freight movement, currently at 18%, through developing dedicated freight corridors (DFCs), enhancing road infrastructure, and expanding inland waterways.

The uneven distribution of modes of transport has resulted in low operational efficiency, causing the GOI to launch a number of logistics-specific programmes, including GatiShakti and the National Logistics Policy. These initiatives seek to improve India's logistics sector by making it more environmentally friendly, agile, transparent, and integrated. The logistics management regimen is capable of overcoming infrastructural disadvantages in the short term while providing cutting-edge competitiveness in the long term. Physical transporters that execute their business processes manually and offline can use various technologies such as AI, Big data, and IoT to improve their service and compete in an international market by delivering real-time and end-to-end connections.

Pros and strengths

Diverse customer base: It serves a wide range of end-market customers across multiple industries, including apparel, engineering goods, electrical hardware, footwear, paints, chemicals, agriculture, and consumer electronics. Its customer base is well-diversified, which reduces dependency on any single client for its business operations. It maintains strong, long-term relationships with many of its clients, reflected in a healthy customer retention rate. No single customer contributes a significant portion of its overall revenue, which helps ensure stability and resilience in its business model.

Diverse Fleet: Its goods transportation fleet includes 62 owned vehicles, and further it has arrangements for outsourced trucks i.e. trucks taken on hire basis, thereby providing it access to larger fleet size. Its strong relationship with single owner drivers and small fleet owners has helped it attach many vehicles to its platform which allow it as a company to remain asset light and nimble. With the help of these attached vehicles, it has ready access to a large fleet size that allows availability of vehicles at peak business time and also allows managing its freight charges.

Young & modern fleet: A young and modern fleet, specifically focusing on electric three-wheelers, positions it at the forefront of sustainable urban logistics. This approach ensures agile and efficient last-mile delivery, minimizing environmental impact with zero tailpipe emissions and reducing operating costs through lower energy consumption. Its investment in advanced EV technology and a contemporary fleet demonstrates a commitment to innovation and eco-conscious practices, appealing to environmentally aware clients. This modern fleet enhances its ability to navigate congested urban areas, delivering goods rapidly and reliably. Ultimately, deploying a young and modern EV three-wheeler fleet strengthens its brand image and fosters long-term customer loyalty in a rapidly evolving market.

Risks and concerns

Dependent on third-party service providers: The company depends on third-party vendors to procure vehicles used in its transportation and logistics operations. Although it has taken steps to reduce this dependency by acquiring its own fleet, a considerable portion of its operations continues to rely on vehicles obtained through rental or trip-based leasing arrangements. As on date, it owns 62 vehicles, of which 45 are small electric vehicles provided on rent, and the remaining 17 are medium and large vehicles directly used in its operations. Additional vehicle requirements are fulfilled through third-party leasing or per-trip rental arrangements. Due to the variable nature of these arrangements, the total number of outsourced vehicles cannot be precisely determined.

Fuel and truck hire charges on operating costs: Fuel and Truck Hire Charges are its most significant operating costs and an increase in such costs or inability to pass on such increases to its customers will adversely affect its results of operations. Its fuel, truck charges and other direct expenses for financial year ended March 31, 2025, March 31, 2024 & March 31, 2023 amounted to Rs 1,956.70 lakh, Rs 1,953.23 lakh and Rs 2,549.23 lakh respectively which accounted for 85.57%, 83.97%, and 86.62% of the total expenses for the respective period.  Its business is characterized by high Freight costs, principally due to hiring of goods transportation vehicles and trucks. 

Operate in highly competitive industry: It operates in a highly competitive industry, dominated by a large number of unorganized players. Increased competition from other organized and unorganized third party logistics providers may lead to a reduction in its revenues, reduced profit margins or a loss of market share. It competes with other goods transportation providers based on reliability, delivery time, security, visibility, and customer service. Its reputation is based on the level of customer service that it provides. If this level of service deteriorates, or if it is prevented from delivering its services in a timely, reliable, safe, and secure manner, its reputation and business may suffer. 

Outlook

Dhillon Freight Carrier is end-to-end integrated supply chain and logistics solutions provider. It is goods transport agency providing Parcel/Less than Truck-Load (LTL), Contract Logistics and Fleet Rental/Fleet Leasing services to different industries. It serves both B2B and B2C customers. On the concern side, it derives a major portion of its revenue from its logistics operations in certain geographical regions. Any adverse developments affecting its logistics operations in these regions could have a material adverse impact on its business, revenue, and results of operations. Moreover, it may not be able to acquire warehouses and other logistics facilities in desirable locations that are suitable for its expansion at commercially reasonable prices and its expansion plans may be delayed or affected by various factors. 

The company is coming out with an IPO of 14,00,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 72 per equity share to mobilize Rs 10.08 crore. On performance front, the company’s revenue from operations increased from Rs 2,401.79 lakh in FY 2023-24 to Rs 2,473.97 lakh in FY 2024-25, reflecting a growth of 3.01%, during the said period. The restated Profit after Tax for FY 2024-25 has been increased to Rs 172.98 lakh as against Rs 109.31 lakh in the FY 2023-24.

Meanwhile, it is focused on expanding into regions and cities with strong demand for transportation and logistics services. Its strategy includes broadening its service offerings to cater to diverse industries, cargo types, and customer segments-reducing dependence on specific markets or sectors. By enhancing its geographic presence, it aims to better serve existing customers, extend its distribution and supply reach, and gain a competitive edge. It is committed to long-term customer relationships by consistently adding value through quality assurance, timely service delivery, and a customer-centric approach. Its expansion efforts are guided by strategic risk management, addressing infrastructure challenges, regulatory complexities, and market competition to ensure sustainable growth.