Sunsky Logistics
- Sunsky Logistics is coming out with an initial public offering (IPO) of 36,60,000 equity shares of face value of Rs 2 each for cash at a fixed price of Rs 46 per equity share.
- The issue will open on September 30, 2025 and will close on October 3, 2025.
- The shares will be listed on SME Platform of BSE.
- The share is priced at 23.00 times higher to its face value of Rs 2.
- Book running lead manager to the issue is Nirbhay Capital Services.
- Compliance Officer for the issue is Aashka Patel.
Profile of the company
The company is engaged in the business of integrated logistics solutions. The company is involved in the management and coordination of the movement of materials or finished goods throughout the supply chain, from the point of origin to the destination. It provides third party logistics services which is popularly known as “3PL” services. “3PL” services comprise freight forwarding, cargo handling, door-to-door distribution, multi-transport operator, and customs clearance services. It encompasses local transportation at the billing end, freight services and custom clearance to again transportation to enable goods reach the destination.
The company has developed network of agents in the major export markets who liaise with local customs for clearance and are responsible for the delivery of goods to their respective clients. Simultaneously, it has working relationship with multiple shipping companies with whom it regularly deals in exporting or importing of consignments. This relationship with multiple partners in shipping lines has kept it in good stead in procuring good rates and are able to take order and make deliveries on time. The company is a member of World Shipping Alliance (WSA) and Bling Logistics Network Inc (Bling). This network is essentially of forward freight agents, shipping lines and other allied people involved in the forward freight industry.
The company is also engaged in the handling of project cargo, which is a specialized activity requiring detailed planning and technical expertise. The comprehensive project handling service includes designing and executing customized solutions tailored to meet specific customer requirements for the transport of specialized equipment, from one location to another using multiple modes of transport, as per the requirement of customer. It is also involved in the management and coordination of the movement of raw materials or finished goods throughout the supply chain, from the point of origin to the destination.
Proceed is being used for:
- Purchase of Flatbed Trailers (Fleet)
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company
- Meeting working capital requirements
- General corporate purpose
Industry Overview
The logistics industry plays a vital role in the dynamic economic landscape of India by enabling the efficient movement of goods and services throughout the country's large territory. As India strives to realise its ambitious economic goals, including achieving a GDP of $5.5 trillion by 2027, the transformation of its logistics sector emerges as a pressing imperative. Given its pivotal role in supporting various industries, from manufacturing to agriculture and e-commerce, the logistics sector faces a myriad of challenges and offers a number of opportunities.
The Indian logistics sector is one of the largest in the world and presents a huge addressable opportunity. The sector is critical for the country's economic growth as it connects various elements of the economy and consists of transportation, warehousing and other supply chain solutions ranging from suppliers to end customers. The Department of Commerce set up a logistics division in July 2017 to oversee the integrated development of the sector. Led by the Special Secretary to the Government of India, the division aims to enhance the sector by devising action plans for policy reforms and process enhancements, addressing challenges, and embracing technology. The industry is characterised by dynamism, undergoing rapid evolution to meet escalating demands. Technological advancements, infrastructure enhancements and governmental initiatives, including GST implementation and the National Logistics Policy (NLP), are precipitating substantial transformations within the sector.
Going forward, roadways presently account for the largest market share Roadways provide the flexibility to navigate intricate routes, ensuring door-to-door delivery and catering to the unique demands of different industries their adaptability to transport numerous cargo, from perishables to bulk commodities is influencing the market growth. Additionally, the Indian road transport system supports last-mile delivery, an essential component of ecommerce and retail operations the exponential growth of online shopping and the rising demand for swift deliveries to customers' doorsteps are augmenting the market growth. Besides this, government initiatives, such as the development of national highways and the modernization of road infrastructure enhance connectivity, reduce transit times, and improve the efficiency of cargo movement which is propelling the market growth.
Pros and strengths
Strong relationship with diverse customer base: The quality of its services has enabled the company to achieve high levels of customer satisfaction and foster enduring relationships with its clients. Maintaining robust connections with its key customers is a fundamental aspect of its business strategy, as these relationships are crucial to its growth. Its clientele spans various sectors, including FMCG, Engineering, PP Woven, industrial goods, medical equipment, and retail. Furthermore, the quality, reach, efficiency, and effectiveness of its operational processes have significantly bolstered customer loyalty. It is confident that its well-established client relationships provide it with a competitive edge in attracting new clients and expanding its business.
Wide range of logistics services and solutions: As a multimodal transport service provider, it delivers a wide range of logistics solutions tailored to the unique requirements of its clients. The company’s services encompass ocean freight forwarding, customs clearance, transportation, and various value added options that assist its clients in improving service quality, minimizing expenses, and achieving enhanced quality, scalability, and visibility in their supply chains. This, along with its extensive logistics and transportation network and a varied service portfolio, has allowed it to attract and retain clients from diverse industry sectors.
Existing agency network and arrangements: It has effectively entered markets in numerous countries by establishing strong connections through its network with international companies. This network has greatly improved its logistics management capabilities across various regions. Through collaborative efforts with agents in countries including Australia, Iraq, UAE, Uganda, USA, Germany, Peru, Serbia, Canada, Netherlands, and the United Kingdom, it has built a robust network. Additionally, it has formed solid relationships with shipping lines and carriers, which are vital to its operations. Its strong relationships with leading carriers enable it to secure advantageous commercial terms and operational benefits for its clients.
Risks and concerns
Maximum revenue comes from limited customers: The company is dependent on a limited number of customers for the majority of its revenue from operations, which exposes it to a high risk of customer concentration. The company has garnered 76.72%, 64.07%, 60.52% and 53.29% of its total revenue from top 5 customers for the period of four months ended on July 31, 2025, FY25, FY24 and FY23 respectively. The loss of one or more such customers, the deterioration of their financial condition or prospects, or a reduction in their demand for its services could adversely affect its business, results of operations, financial condition and cash flows.
Geographical constrain: The company has its registered office in Ahmedabad, Gujarat. The company currently derives the majority of its revenue from a Gujarat, which increases its dependency on this region. The company has garnered 90.42%, 90.30%, 93.93% and 90.72% of its total revenue from the state of Gujarat for the period of four months ended on July 31, 2025, FY25, FY24 and FY23 respectively. Any substantial changes in regulations, economic conditions, or industry dynamics within this state could negatively impact its business, financial condition, profitability, cash flows, and operational results.
Stiff competition from various international and domestic third-party logistics companies: Logistics industry in India is generally fragmented. It may face competition from a number of international and domestic third-party logistics service providers. Some of its competitors may have significantly greater financial and marketing resources and operate larger networks than it does. In the regions of India in which it operates, it faces competition from certain regional logistics services providers and the unorganized sector, some of which have market presence in their respective areas of operation. It may also face competition from new entrants into the logistics service industry. If it cannot maintain or gain sufficient market presence or are unable to differentiate itself from its competitors, it may not be able to compete effectively.
Outlook
Sunsky Logistics is an integrated logistics solution provider. The company offers third-party logistics services, including freight forwarding, cargo handling, door-to-door distribution, multi-transport operators, and custom clearance services. The company has Strong relationship with diverse customer base. Moreover, the company has wide range of logistics services and solutions. On the concern side, a substantial portion of the company’s revenue is generated from certain key customers, and the loss of one or more such customers, the deterioration of their financial condition or prospects, or a reduction in their demand for its services could adversely affect its business, results of operations, financial condition and cash flows. Moreover, the company’s business operations are mainly concentrated in Gujarat region, and any adverse developments affecting its operations in this region could have an adverse impact on its revenue and results of the operations.
The company is coming out with an IPO of 36,60,000 equity shares of face value of Rs 2 each for cash at a fixed price of Rs 46 per equity share to mobilize Rs 16.84 crore. On performance front, the company has reported 49.24% rise in Revenue from operations to Rs 2,204.37 lakh in FY25 as compared to Rs 1,477.07 lakh in FY24. The company’s net profit more than double to Rs 258.69 lakh in FY25 from Rs 124.78 lakh in FY24.
In line with the company’s business strategies, it has been able to target a large customer base due to its experience in dealing with customers across multiple sectors, which provide it with a competitive advantage. Its approach also involves offering customized solutions to target customers and analyzing their business processes to propose comprehensive logistics and supply chain solutions. Its marketing team focuses on both customer accounts management for existing customers and new business development. Leveraging its multi-industry exposure and its promoter, it has access to numerous potential customers across diverse sectors. In addition to expanding its reach to new customers, it aims to increase its revenues and margins by expanding the range of services it offers to existing customers.
