Jayesh Logistics
- Jayesh Logistics is coming out with an initial public offering (IPO) of 23,47,000 equity shares in a price band of Rs 116-122 per equity share.
- The issue will open on October 27, 2025 and will close on October 29, 2025.
- The shares will be listed on SME Platform of NSE.
- The face value of the share is Rs 10 and is priced 11.60 times of its face value on the lower side and 12.20 times on the higher side.
- Book running lead manager to the issue is Indcap Advisors.
- Compliance Officer for the issue is Shekhar Pareek.
Profile of the company
Jayesh Logistics is a service provider in the logistics and supply chain management industry, primarily providing freight services using road transportation like trucks and railways and non-freight services; like loading and unloading, truck on hire also known as Truck Forwarding Note “TFN”, custom clearance, and machinery on hire, to over 200 clients from various industries such as iron and steel, infrastructure equipment, cement, heavy industrial machinery, engineering, construction machinery and more. “The company handles both domestic and cross-border consignments. The company also provides non-freight support which enables it to address various supply chain requirements of its clients and provide them with end-to-end solutions. It is an ISO 9001:2015 and ISO 14001:2015 certified company, which emphasizes its quality management systems and environmental management respectively. It has been awarded with various awards as a road transport operator.
The company's operations are supported by an in-house fleet of 95 heavy material and cargo handling trucks as on April 03, 2025. Having owned trucks ensures better control over transportation services and reliability in cargo handling. Its fleet encompasses trucks with various types of design, size, and capacity. The diversity of its fleet of vehicles allows it to cater to a wide range of consignments. To cater to this wide range of consignments and excessive demand during a particular season, it also connects and uses third-party truck operators to utilize their vehicles on a need basis.
Its fleet operators (Drivers) are hired through a network of agents. Its agents have a huge network of drivers where availability is not a constraint, this helps it to ensure higher utilization of fleet and provide uninterrupted services wherein it does not have to worry about availability of these operators (drivers). Availability and management of these drivers is a well-known challenge across the industry as a whole and is one of the primary reasons of client dissatisfaction and consignment delays.
Proceed is being used for:
- Funding the expenditure towards purchase of side wall trailers
- Funding the working capital requirements
- Funding the implementation for phase 2 of Smart Logistics Application
- General corporate purposes
Industry Overview
The Indian logistics industry is growing, due to a flourishing e-commerce market and technological advancement. The logistics sector in India is predicted to account for 14.4% of the GDP. The industry has progressed from a transportation and storage-focused activity to a specialised function that now encompasses end-to-end product planning and management, value-added services for last-mile delivery, predictive planning, and analytics, among other things. One of the key drivers of this expansion is projected to be the rise of India's logistics industry, which employs 22 million people and serves as the backbone for various businesses. The logistics sector in India was valued at $250 billion in 2021, with the market predicted to increase to an astounding $380 billion by 2025, at a healthy 10%-12% year-on-year growth rate. Moreover, the government is planning to reduce the logistics and supply chain cost in India from 13-14% to 10% of the GDP as per industry standards.
The Indian logistics sector stands as one of the world's largest and plays a crucial role in driving economic growth. Following a 2% contraction in FY21, the market experienced a robust post-COVID recovery in FY22, witnessing a remarkable 14% growth and reaching a value of $435 billion. As per the projections from EY, a leading global consulting firm, the logistics market in India is poised to expand further, reaching $591 billion by FY27. The report further states that in FY22, organised players represented only 5.5-6% of the logistics market segments, encompassing road transportation, warehousing, and supply chain services. However, organised players are anticipated to exhibit a notable CAGR of approximately 32% between 2022 and 2027. Consequently, their market share is expected to reach 12-15% by FY27. This transformation is expected to be led by organised players’ capacity to provide integrated services, leverage network- and scale-driven efficiencies, and make substantial investments in technology and engineering. These efforts are projected to promote their market competitiveness and capture a larger share of customer business.
As the Indian logistics industry confronts challenges, the road ahead demands strategic initiatives. Fostering technological integration, embracing sustainable practices, and fortifying last-mile connectivity are imperative. Collaborations across sectors, including the government, private enterprises, and technology providers, would be pivotal for holistic advancement. Investment in skill development and infrastructural enhancements would further propel efficiency. By navigating regulatory complexities, adopting innovative solutions, and cultivating a responsive ecosystem, India’s logistics sector can not only overcome existing challenges but also emerge as a resilient and globally competitive force, contributing substantially to the nation's economic growth in the foreseeable future.
Pros and strengths
Technological support to customers by deployment of an integrated logistics IT solution: The company’s strength lies in the development and deployment of SMART-SYS, an integrated logistics IT solution designed to address industry challenges SMART-SYS combines core operational systems, including ERP, fleet tracking (GPS/RFID), and block chain-enabled e-POD tokens, with customer-focused tools such as AI-driven CRM and third-party smart payment integrations. This system eliminates manual inefficiencies, supports real-time data tracking, and automates critical processes. Its layered implementation architecture - comprising the Activity Layer for fleet tracking and the Services Layer for advanced SAP-enabled functionalities such as invoicing, payment management, and route optimization, provides a scalable and adaptable solution tailored to the evolving needs of the logistics industry.
Varied range of end-market customers across industries and industrial sectors: The company caters to a wide range of end-market customers across various industries, industrial sectors, including Iron & Steel (both raw materials like Iron Ore, Iron Files, Coal etc.; to finished products like TMT bars, Billets, Strip Coils, Sheets etc.), Cement Industry (Limestone, Clinker, Cement), Heavy Industrial Machinery (ODC Cargo), Infrastructure Equipment, Engineering & Construction machinery. While it typically engages in long-term associations with its esteemed clientele. Its diverse customer base and strong connections with key clients are vital to its business strategy and growth.
Quality certifications: The company holds certifications for ISO 9001:2015 (Quality Management System) and ISO 14001:2015 (Environmental Management System). These certifications demonstrate quality and timeliness of its transportation services. The company’s commitment to quality has been key to sustaining and growing its business, ultimately benefiting its customers.
Risks and concerns
Maximum revenue comes from limited customers: The company’s substantial portion of revenues from operations has been dependent upon a few customers. Its top ten customers for the financial years ended March 31, 2025, March 31, 2024 and March 31, 2023, accounted for 76.45%, 69.84% and 48.20% of its revenue from operations for the respective year/period. Further, its top five customers for the financial years ended March 31, 2025, March 31, 2024 and March 31, 2023, accounted for 53.07%, 57.87% and 34.99% of its revenue from operations for the respective year/period. Its reliance on a limited number of customers for its business exposes it to risks like reductions in orders, delays, or cancellation of orders from its significant customers, failure to negotiate favourable terms with its key customers, or the loss of these customers, all of which would have a material adverse effect on the business, financial condition, results of operations, cash flows and future prospects of the company.
Geographical constrain: Currently, the company delivers its services in India and Nepal. Its revenue from operations from the India - Nepal cross border movements was 92.18%, 63.53%, 68.09% and 78.96% for the period ended June 30, 2025 and the financial years ended on March 31, 2025, March 31, 2024 and March 31, 2023 respectively. It derives significant portion of its revenue from operations from Eastern India, India Nepal Corridor and Nepal hinterland. Any slowdown in business activities, industrial growth, changes in regulatory landscape, price cutting competition, availability of resources, infrastructure deterioration, political instability etc. in Eastern India, India Nepal Corridor and Nepal hinterland can have a material adverse effect on its business, results of operations and financial condition.
Dependent on few suppliers for purchases of product/service: The company’s top ten suppliers contribute 23.52%, 32.64% and 26.52% of its total cost of services consumed for the financial year ended on March 31, 2025, 2024 and 2023, respectively based on restated financial statements. Further, its top five suppliers for the financial years ended March 31, 2025, March 31, 2024 and March 31, 2023, accounted for 18.39%, 28.66% and 19.90% respectively, of its revenue from operations for the respective year/period. It cannot assure that it will be able to get the same quantum and quality of supplies, or any supplies at all, and the loss of supplies from one or more of them may adversely affect its purchases of stock and ultimately its revenue and results of operations.
Outlook
Jayesh Logistics is a comprehensive logistics solutions provider. It particularly focuses on cross-border cargo movements across the Indo-Nepal Corridor and the Nepal hinterland. The company has varied range of end-market customers across industries and industrial sectors. On the concern side, substantial portion of the company’s revenue from operations is dependent from limited number of customers, the loss of such customers, the deterioration of their financial position or prospects, or a reduction in their demand for its products could affect its business, financial position and future prospects of the company. Moreover, it generates major portion of revenue from its operations in certain geographical regions and any adverse developments affecting its operations in these regions could have an adverse impact on its revenue and results of operations.
The company is coming out with a maiden IPO of 23,47,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 116-122 per equity share. The aggregate size of the offer is around Rs 27.23 crore to Rs 28.63 crore based on lower and upper price band respectively. On performance front, the company’s revenue from operations surged 26.77% to Rs 11,188.21 lakh in FY25 as compared to Rs 8,825.91 lakh in FY24. Moreover, the company has reported 127.53% rise in net profit at Rs 719.74 lakh in FY25 as compared to Rs 316.33 lakh in FY24.
Building and nurturing relationships with its customers and logistics partners is crucial to the company’s success. By consistently providing dependable services, it cultivates trust and loyalty among its clients. Moreover, the company works closely with its logistics partners to optimize operations and improve efficiency, ensuring a smooth experience for its customers. Its dedication towards mutual respect and understanding enhances these relationships, fostering long-term partnerships that benefit everyone involved. Its high degree of commitment and technology-based solutions along with specialisation in movement of heavy industrial input materials over a decade, provides it with a unique positioning in the market segment.
