Total Transport Systems subscribed 2.76 times on day 1

The company issued 3.78 mn shares at a fixed price of Rs 45 per share of face value of Rs 10

The initial public offering (IPO) of the transport major Total Transport Systems was subscribed 2.76 times by investors on the first day of its entry into the capital market.

The company has entered the capital market with the issue of 3.78 million shares at a fixed price of Rs 45 per share of face value of Rs 10 each, including premium of Rs 35 per share. Sarthi Capital Advisors is the sole lead manager to the issue. The issue opened on Tuesday and closes on 28th July 2017.

Subscription from both the qualified institutional buyers (QIB) and high net worth individuals (HNI) was reported at 2.77 times while retail portion was subscribed 3.05 times by Tuesday evening. HNI Investor Mukul Agarwal picked up 4.75 per cent stake in the company.

Total Transport specialises in less than container load (LCL) and cargo consolidation, wherein small shipment is consolidated and moved to over 1,100 destinations worldwide with the network partners at respective hubs. It offers both the services combined with freight forwarding that includes arranging of all pre-shipment activities like export inspection, excise inspection, container survey, cargo pickup and cargo stuffing. Moreover, they offer consolidation for exports and deconsolidation for imports.

The company reported a healthy top line of over Rs 210 crore of revenues with profit after tax (PAT) of Rs 5.78 crore in the financial year 2016-17. With an asset light model and debt largely in the form of working capital finance, the return on capital employed (ROCE) and return on net worth (RONW) stood at 48 per cent and 41 per cent, respectively.