Mr. Richard Theknath, Chairman and Managing Director, Jet Freight Logistics Ltd
Mumbai (Maharashtra) [India], January 21: Jet Freight Logistics Limited – One of the leading and trusted technology-driven freight forwarding company with a specialisation for perishable cargo is planning to launch its rights issue of Rs. 37.70 crores. Company is planning to utilise the funds for Company’s expansion plans, including the purchase of a warehouse, meeting working capital requirements, entering new geographies and general corporate purposes. Company has fixed January 11 as the record date for the purpose of determining the equity shareholders entitled to receive the rights entitlement. Rights issue of Company is priced at Rs. 16.25 per share.
Rights issue of the Company will open on January 20 and close on January 31. The last date for market Renunciation of Rights Entitlements is January 25, 2023. The Company will issue 2,32,01,892 fully paid-up equity shares of face value Rs. 5 each at an issue price of Rs. 16.25 per Equity Share (including a premium of Rs. 11.25 per Equity Share) aggregating to Rs. 37.70 crores. The Rights entitlement ratio for the proposed issue is fixed at 1:1 (1 fully paid-up equity share for every 1 fully paid-up equity share held by the equity shareholders).
Sharing more details, Mr. Richard Theknath, Chairman and Managing Director, Jet Freight, said, “Company has taken many important strategic initiatives, including –”Mission Excel” in the recent past with a focus to expand capacities, adding more channel partners aiming at exponential growth. Our business initiatives are built upon the 4 P’s of business expansion which comprises Product expansion, People & Culture, Process automation, and Promotion of business. Our long-term focus continues to be investing in growth through building new capacities, expanding footprints and delivering value for all our stakeholders. Proceeds of the issue will further strengthen Company’s balance sheet and help fund its expansion plans and strategic growth initiatives.”
Board of the directors of the Company on December 14, 2022, approved the issuance of equity shares by way of a rights issue to eligible equity shareholders. Post the rights issue, the total outstanding shares of the Company should increase to 4,64,03,784 equity shares from 2,32,01,892 equity shares prior to the rights issue.
Highlights:-
· The rights entitlement ratio is 1:1 for the proposed rights issue; 1 fully paid-up equity share for every 1 fully paid-up equity share held by the equity shareholders.
· Funds raised through the issue will be used to fund Company’s expansion plans, including the Purchase of a Warehouse, Working capital requirements and general corporate purposes.
· Company specialises in servicing perishables, time-sensitive express shipments, general cargo, ODC, and hazardous cargo through air, ocean and land mode of transport.
· For FY22, Company reported sales of Rs. 461 crore – a rise of 31% Y-o-Y from Rs. 352 crores in FY21.
· Company has received 50-plus awards from prestigious entities, including top-performer certifications from many Indian and International airlines and institutions.
· Company has launched the business transformational initiative, “Mission Excel” – Aims to grow revenues 5 times in the next 5 years; Aims for multi-fold growth in trade volumes from the USA.
Established in 1986, Jet Freight is a trusted and sustainable 4PL Freight forwarder and provides customised logistics solutions globally. Company specialises in servicing perishables, time-sensitive express shipments, general cargo, ODC, and hazardous cargo through air, ocean and land mode of transport. It is also an authorised customs clearing and handles over 150 tonnes of air cargo 24X7 every day. Company has received 50-plus awards from prestigious entities, including top-performer certifications from many Indian and International airlines and institutions.
India’s logistics are estimated to account for about 14.4% of GDP. In 2019, the Indian logistics sector was valued at Rs. 15.1 lakh crore (US$ 190 billion). The unorganised sector amounts to 99% of the logistics sector that includes owners of less than five trucks, brokers or transport companies’ affiliates, small-scale warehouse owners, customs brokers and freight forwarders, among others. The government has initiated various steps to boost the logistics sector, and it has a huge scope for growth for the organised players.
“India’s logistics is transforming rapidly into platform-driven/aggregator-driven business. We want to be at the forefront of this technology-driven logistics revolution and leverage our strengths to have key footholds in both B2B and B2C. In line with the Company’s – “Mission Excel”, it is planning to expand the trade volumes with US multifold in the near future. This expansion stint would certainly go a long way in empowering Jet Freight to achieve its targets smoothly. The newly formed, dedicated, and experienced Executive Leadership Team is working hard towards the successful expansion of this dream project,” said Mr. Theknath.
Expanding its roots from India with its significant existence & sale support centers in 11 cities, Company has marked its footprints in UAE, Netherlands, United States of America and has an agency network in 150+ countries. Recently, Jet Freight bagged “The STAT Trade Times – International Freight Forwarder of the Year – Region India Highly Acclaimed” Award at Air Cargo India 2022. Company is also expanding its wings to new regions in the country like Goa, Lucknow, and Jaipur, apart from its existing presence in 13 cities across the country.
For FY 22, Company reported sales of Rs. 461 crore – a growth of 31% as against sales of Rs. 352 crore in FY21. As on Sep 2022, Promoter Group holding in the Company is 51.18%. During FY22, Company announced a stock split – one equity share of face value of Rs.10 each into two equity shares of face value of Rs. 5 each.
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