Neptune Logitek
- Neptune Logitek is coming out with an initial public offering (IPO) of 37,00,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 126 per equity share.
- The issue will open on December 15, 2025 and will close on December 17, 2025.
- The shares will be listed on SME Platform of BSE.
- The share is priced at 12.60 times higher to its face value of Rs 10.
- Book running lead manager to the issue is Galactico Corporate Services.
- Compliance Officer for the issue is Manisha Jain.
Profile of the company
Neptune Logitek, with over 13 years of operational experience since inception, provides differentiated logistics solutions with their: (a) Pan-India presence, (b) integrated service offerings, (c) focus on improving service through door to door services, and (d) large network of vehicle fleet. Being an integrated logistics company in India, the company primarily operates in the following segments: (i) Freight Forwarding and Custom Clearance including Import and Export; (ii) Air Freight Transportation (including Import and Export and Courier Services; (iii) Door to Door Multimodal Coastal Forwarding (iv) Road Transportation and (v) Rail Transportation. Currently, the company has a Pan-India presence through a network of head office and 9 (Nine) branch offices, strategically located to support its operations. Out of these, one branch is specifically dedicated to the repair and maintenance of its trucks and fleet, which enables it to ensure vehicle readiness, reduce downtime, and maintain service quality across its logistics chain.
The company operates on an asset-based business model, which allows it to deliver high-quality services to its customers. The essential assets, including commercial vehicles, are either owned by it or provided through a network of business partners on a lease basis. As a result, it maintains its own fleet of vehicles while also collaborating with its business partners to hire additional vehicles as needed to support its logistics operations, it also operates a captive petrol pump with storage capacity of 60 kilolitres, for which it holds a valid Class B license from the Petroleum and Explosives Safety Organisation (PESO). This in-house facility helps it better manage fuel usage and optimize operational costs.
The company’s operations are further strengthened by the use of cutting-edge digital tools and proprietary software, allowing it to offer agile, efficient, and transparent logistics solutions. Key technological features include GPS-enabled fleet management systems, real-time vehicle tracking, and an auto on/off feature for engine monitoring and control. These technologies enhance safety, reduce idle time, and ensure better utilization of fleet resources. Additionally, it utilizes predictive analytics to anticipate demand fluctuations and optimize route planning, along with automated workflows that support data-driven decision-making.
Proceed is being used for:
- Funding capital expenditure requirement of the company towards Purchase of trucks (Vehicles) and ancillary equipment (Equipment)
- Funding towards repayment of loan
- Funding expenditure for general corporate purpose
Industry Overview
India’s logistics industry is poised for significant growth over the coming years, driven by rapid industrial expansion, infrastructure development, policy reforms, and the booming e-commerce sector. The market, valued at $354.0 billion in FY 2024, is projected to reach approximately $450.0 billion by FY 2027, reflecting a robust compound annual growth rate (CAGR) of 8.3%. This growth trajectory underscores the sector’s rising importance in facilitating domestic and international trade, while ongoing skill development initiatives and government support continue to enhance operational efficiency and workforce capabilities.
The logistics industry in India stands as a cornerstone of the nation’s economic framework, valued at a substantial $354 billion and contributing approximately 18.4% to the country’s Gross Domestic Product (GDP). As India continues to emerge as a global economic powerhouse, the logistics sector plays a pivotal role in facilitating trade, supporting supply chains, and enabling the seamless movement of goods across the nation and beyond. In recent years, the logistics sector has witnessed a significant transformation, driven by favorable policy changes and strategic government initiatives. The easing of Foreign Direct Investment (FDI) norms has opened up the sector to international players, bringing in advanced technologies, better practices, and increased competition. Furthermore, the proposed implementation of the Goods and Services Tax (GST) has the potential to create a unified national market, eliminating the complexities of inter-state taxation and enhancing the efficiency of logistics operations.
India’s logistics industry is poised for significant growth over the coming years, driven by rapid industrial expansion, infrastructure development, policy reforms, and the booming e-commerce sector. As illustrated in the chart, the market size is projected to grow from $354.0 billion in FY 2024 to approximately $450.0 billion by FY 2027, reflecting a compound annual growth rate (CAGR) of 8.3%. Technological advancements such as AI-driven fleet management, blockchain-enabled supply chains, and IoT-based tracking solutions are becoming key differentiators. Companies investing in end-to-end visibility, real-time shipment tracking, and predictive analytics have a competitive edge in optimizing operational efficiency and customer satisfaction. As the industry continues to evolve, logistics firms that prioritize automation, sustainability, and digital transformation will have a stronger foothold in the market. The ability to provide integrated solutions balancing speed, cost efficiency, and eco-friendly operations will be crucial in maintaining a competitive advantage in this dynamic sector.
Pros and strengths
Scaled and integrated logistics operations: The company is an integrated logistics company in India, primarily operating in (i) Freight Forwarding and Custom Clearance including Import and Export; (ii) Air Freight Transportation (including Import and Export and Courier Services; (iii) Door to Door Multimodal Coastal Forwarding (iv) Road Transportation and (v) Rail Transportation. The company has Pan-India operations through its network of head office and 9 (Nine) branch offices as of August 31, 2025. With over 13 years of its operational experience since inception, it provides differentiated logistics solutions with its: (a) Pan-India presence, (b) integrated service offerings, (c) focus on improving service through door to door services, and (d) large network of vehicle fleet across different geographies (such as Gujarat, Kerela, Karnataka and Tamil Nadu). Through its integrated operations, the company can leverage synergies across different segments of cargo handling, transportation and other facilities.
Fuelling success with an asset-driven business mode: The company resorts to an ‘asset-based' business model, which is fundamental to delivering high-quality services to its customers. This model ensures that it has the necessary resources at its disposal to meet diverse client needs effectively. The key assets required for its operations include commercial vehicles, containers, and warehouses. Consequently, these assets are either owned by the company, allowing it to direct control over their maintenance and availability, or they are provided through a robust network of its business partners who lease these resources to it. This strategic partnership enables it to scale its operations flexibly and efficiently, ensuring that it can respond promptly to varying demands without the burden of excessive capital investment.
In-house maintenance and direct procurement: As part of the company’s commitment to maintaining operational efficiency and ensuring high fleet availability, the company has established an in-house maintenance facility located at Mithirohar, Gandhidham, Kutch. While a significant portion of its vehicle servicing is conducted at authorized manufacturer workshops, this facility supports the upkeep of its fleet, including vehicles that are out of warranty. The facility is equipped with diagnostic tools and is supported by a team of technicians who carry out regular maintenance and repair work. Representatives from leading vehicle manufacturers are also present on-site to assist in servicing and resolving technical issues. This arrangement enables timely servicing, helps reduce mechanical disruptions, and improves vehicle uptime across operations.
Risks and concerns
Revenue concentration vulnerability: The company has historically derived a substantial portion of its revenue from a limited number of customers, indicating a high level of customer concentration, which could recur in future periods and adversely impact its business, results of operations, financial condition and cash flows. Loss of one or more of these customers or a reduction in the amount of business it obtains from them could have an adverse effect on its business, results of operations, financial condition and cash flows. Further, it does not have long-term agreements with several of its customers.
Risks from limited vendor base: The company’s top ten suppliers contribute 98.21%, 15.05%, 12.25% and 90.05% of its total purchase for the five months period ended August 31, 2025, financial year ended on March 31, 2025, 2024 and 2023, respectively based on restated financial statement. The company 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.
Technology upgrade and competitiveness risk: The company’s business operations, including customer interactions and transaction processing, are primarily facilitated through its mobile application and other digital platforms. While it endeavour to keep its technology infrastructure up to date, rapid technological advancements or the adoption of newer technologies by existing or potential competitors could render its current systems less effective or obsolete. The development, integration, and implementation of such new technologies require significant capital investment, time, and entail operational risks. If the company is unable to adapt to these changes in a timely and cost-effective manner, or if it fails to upgrade its technology as needed, it could adversely affect its operational efficiency, customer satisfaction, and overall competitiveness, thereby negatively impacting its business, financial condition, and results of operations.
Outlook
Neptune Logitek is an integrated logistics solution provider company in India. The company uses cutting-edge technological tools like GPS-enabled fleet management, real-time vehicle tracking, and an auto-on/off engine monitoring and control feature. The company use seamless technology integration for enhanced efficiency. It has in-house maintenance and direct procurement. On the concern side, the company has historically derived a substantial portion of its revenue from a limited number of customers, indicating a high level of customer concentration, which could recur in future periods and adversely impact its business, results of operations, financial condition and cash flows. Moreover, the company is dependent on a few suppliers for its purchases and the loss of any of these large suppliers may affect its business operations.
The company is coming out with an IPO of 37,00,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 126 per equity share to mobilize Rs 46.62 crore. On performance front, the company’s revenue from operations surged by 47.07%, rising from Rs 17,492.05 lakh in FY 2023-24 to Rs 25,725.39 lakh in FY 2024-25. The company’s PAT increased significantly, from Rs 0.36 lakh in FY 2023-24 to Rs 915.58 lakh in FY 2024-25.
The company will continue to leverage its relationships with its customers and grow its multimodal capabilities. Over the past few years, several of its customers have taken benefits of its multimodal arrangements, allowing it the flexibility to choose the most cost-efficient form of transportation. The key pillars of its growth include continued business development, increasing revenues from existing customers and acquire new customers, benefiting from government policies and regulations to develop business, and create better competitive position and service offerings. The company provides a wide range of logistics services, including custom clearance, freight forwarding, supply chain management, and surface transportation. This integrated approach allows it to cater to diverse client needs and create value through end-to-end solutions.
