The rights issue of Jet Freight Logistics Limited - one of the technology-driven freight forwarding company with a specialisation for perishable cargo has received 54.7% subscription as on 27 January 2023. The issue will close for subscription on 31 January. Company is planning to raise Rs. 37.7 crore through rights issue. Rights entitlement ratio is 1:1.
As on 27 January, company has received bids of 1.27 crore share in the Rights issue out of the total 2.32 crore shares on offer. Rights are available at Rs. 16.25 per share - 12.2% discount to closing share price of Rs. 18.50 on 27 January 2023.
Proceeds from rights issue will be utilised to fund for company's expansion plans including purchase of warehouse, meeting working capital requirements, entering new geographies and for general corporate purpose.
Rights issue of the company was opened on January 20 and will close on January 31. The Company plans to 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 crore. 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). Post the rights issue, 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.
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 that 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."
Established in 1986, Jet Freight is a trusted and sustainable 4PL Fright forwarder and provides customised logistics solutions globally. Company specialises in servicing perishables, time-sensitive express shipments, general cargo, ODC, 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 by many Indian and International airlines and institutions.
For FY 22, Company reported sales of Rs. 461 crore - 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.