AVG Logistics Ltd.

Sixth Sense India Opportunities II has subscribed to100% of Anchor Investment Portion of the AVG Logistics Ltd.-SME IPO

The issue size is Rs. 33.06Croreat Cap Price; Opens on 28^th March 2018 and Closes on 3^rd April2018 and proposed to get listed on Emerge Platform of National Stock Exchange of India Ltd.

The Company proposes to issue 30.90 Lakh equity shares at a price band of Rs. 105-107 per equity share with aminimum lot size of 1,200 equity shares.

Out of the total issue size, 5% is reserved for Market Maker and 50%, 35% and 15% of the Net Issue to the Public are reserved for QIBs, Retail and Non-Retail investors respectively.

The Company specializes in Logistics and Warehousing services and provides services to leading multinationals& Indian corporates

Systematix Corporate Services Ltd. is the Book Running Lead Manager

Sixth Sense India Opportunities II, promoted by Mr. Nikhil Vora has fully subscribed to Anchor Investment Portion of the SME IPO of AVG Logistics Ltd (“Company”). The fund has invested Rs. 9.41 crore, which accounts for 100% of the Anchor Investment Portion and 28.47% of the total issue size.

The Company is proposing to issue 30.90 Lakhs Equity Shares at price band of Rs. 105-107 per equity share with a minimum lot size is of 1,200 equity shares. The objects of the issue are for setting up warehousing facilities at Agartala & Mysuru and for working capital requirements.

The Companyis primarily into logistics and warehousing services. The Company has owned a fleet inclusive of 264 tucks, reefer containers, bulkers etc. and has 3.54 Lakh sq.ft. of warehousing space. In logistics segment, the Company provides point-to-point, less than/full truck load, time definite transportation services. In warehousing segment, the Companyprovides warehousing, distribution, and other value added services including temperature controlled logistics providing cold chain warehousing, transportation solutions and distribution of perishable goods and products.

Net revenues increased to Rs 194.7 Crore in FY17 as against Rs 192.2 crore in FY16. Top 5 clients include from the various industries such as FMCG, Auto, Pipe, Consumer Durables etc. During 6MFY18, the revenues stood at Rs 103.4 crore.

Revenues of the Company have grown at a CAGR of 14% over FY14 to FY17.EBITDA margin improved to 8.5% in FY17 from 8.3% in FY16. The margin further improved to 10% in 6MFY18. Profit after Tax (PAT) increased by 15.8% to Rs 4.4 crore in FY17. For 9MFY18, PAT stood at Rs 3.5 crore.

Commenting on the occasion, Mr. Sanjay Gupta, Managing Director& CEO, said that, “We are delighted to tap the market through SME IPO route, this will give us required growth capital to grow at better rates in the coming years to increase the volume of the business we are currently doing.

We have extensive network of 49 branches across 23 states and we are planning to expand its networks in more cities and also wants to add own fleet of vehicles and warehousing space to cater to more number of customers and routes.”

About the Company

AVG Logistics Ltd., incorporated in 2010 and promoted by Mr. Sanjay Gupta, specializes in transportation and warehousing services to select clients with PAN India distribution network and automated technology systems. The Company has owned a fleet of 264 tucks, reefer containers, bulkers etc. and 3.54 Lakh sq. ft. of warehousing space. The Company provides solutions to customers to leverage their distribution network which optimises the performance, cost and efficiency of their supply chains, thereby shortening their lead-time to market.Customers from the FMCG and Consumer Durables industry have been with the Company since inception. Over a period of 4-5 years, the Company has also added marquee clients from the various industry such as FMCG, Auto, Consumer Durables, Dairy etc.