CJ Darcl Logistics IPO

About CJ Darcl Logistics Ltd IPO

The IPO of CJ Darcl Logistics comprises a fresh issue and an offer for sale of up to 26,470,000 and 9,905,355 equity shares. The price band is ₹[TBA].

CJ Darcl Logistics IPO opens on [TBA] and closes on [TBA]. The allotment of shares will take place on [TBA]. The credit of shares to the Demat account will take place on [TBA]. The initiation of refunds will take place on [TBA]. The listing of shares will take place on [TBA].

The lot size of shares in the IPO is [TBA]. The minimum number of lots in the IPO for retail investors is [TBA]. The minimum investment amount required by a retail investor is ₹[TBA] based on the upper price.

CJ Darcl Logistics is a logistics company with over 39 years of operational experience, offering integrated multimodal logistics and warehousing and distribution services to enterprise customers across India and overseas markets. It’s a subsidiary of CJ Logistics Corporation which is one of the largest logistics companies in South Korea based on revenue.

Objectives of CJ Darcl Logistics Ltd IPO

The company plans to utilise the proceeds received from the IPO for:

• Repayment/ prepayment, in full or in part, of certain outstanding borrowings availed by the company
• Funding capital expenditure requirements of the company towards purchase of EVs
• General corporate purposes

Industry Outlook

Logistics is an integral part of any country, providing efficient and cost-effective flow of raw materials and finished goods, and facilitating transactions between the consuming and producing parts of the economy.

In logistics, market size of key segments – surface transport (Road Full Truck Load (FTL) & Less than Truck Load (LTL), express & rail transport), air cargo domestic, coastal transport, all modes combined is estimated to be ~₹10-11 trillion & warehousing & distribution is estimated to be ~₹1.4-1.5 trillion in fiscal 2025. Overall, the logistics market has grown at 10.0% CAGR from ₹~7 trillion in fiscal 2020.

CRISIL Intelligence believes surface freight in tonne-kilometre (TKM) terms (road & rail combined) to have grown by ~6- 7% CAGR during fiscal 2020-25.

CJ Darcl Logistics Company Information

CJ Darcl Logistics is a logistics company with over 39 years of operational experience, offering integrated multimodal logistics and warehousing and distribution services to enterprise customers across India and overseas markets. It’s a subsidiary of CJ Logistics Corporation which is one of the largest logistics companies in South Korea based on revenue.

Over the years, the company has evolved into an integrated logistics service provider, offering a variety of services which include (i) integrated multimodal logistics (including full truck load (“FTL”), rail transportation, air cargo transportation, shipping/coastal transportation, project logistics, freight forwarding); and (ii) warehousing and distribution (“W&D”).

Strengths of CJ Darcl Logistics

• Scaled and integrated multimodal logistics operations with leadership in the domestic B2B road transportation vertical
• Asset-right business model resulting in higher efficiencies
• Parentage of CJ Logistics and well established and experienced promoters, management and employees
• Long standing relationship with diverse set of customers across industries
• Customised and technology driven logistics solutions increasing efficiency and quality of services

Risks of CJ Darcl Logistics Ltd

• The company derives a significant portion of its revenue from operations from its top 20 customers, with its top five customers contributing 38.47% revenue from operations in Fiscal 2023. 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.

• The company is dependent on the performance of industries in which its customers operate, particularly metals and minerals. Fluctuations in the performance of such industries may result in a loss of such customers, a decrease in the volume of work it undertakes or the price at which it offers its services.

• The company may not be able to pass on any increase in costs levied by its third-party service providers to its customers. Conversely, it may not be able to pass on any decline in prices it charges its customers to its third-party service providers. It’s also exposed to risks related to an escalation in fuel prices.

Anchor Investor Bidding Date

TBA

IPO Registrar and Book Running Lead Managers

• IPO Registrar: MUFG Intime India
• Book Running Lead Managers: ICICI Securities and DAM Capital Advisors

CJ Darcl Logistics Business Model

Over the years, CJ Darcl Logistics has evolved into an integrated logistics service provider, offering a variety of services which include (i) integrated multimodal logistics (including full truck load (“FTL”), rail transportation, air cargo transportation, shipping/coastal transportation, project logistics, freight forwarding); and (ii) warehousing and distribution (“W&D”).

CJ Darcl Logistics Growth Trajectory

The revenue from operations of CJ Darcl Logistics has grown from ₹4215.826 crores in FY 23 to ₹5161.109 crores in FY 25. The company’s EBITDA margin has increased from 4.38% in FY 23 to 5.20% in FY 25. Profit for the year margin increased from 1.61% in FY 23 to 1.80% in FY 25. Scaled and integrated multimodal logistics operations with leadership in the domestic B2B road transportation vertical have helped the company grow over the years.

CJ Darcl Logistics Market Position

CJ Darcl Logistics has a pan-India operational presence covering over 6,691 locations through its network of 202 branch offices and 6 administrative offices, 14 warehousing facilities and 1 railway stock yard as of March 31, 2025.

How to Apply for CJ Darcl Logistics IPO?

To apply for this IPO:

• Log in to your Kotak Neo Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.