Dhillon Freight Carrier IPO Opens at ₹72 Per Share, Targets ₹10.08 Crore Fundraise

Mumbai, 29 September 2025: Dhillon Freight Carrier Limited (BSE SME: DFCL) has opened its ₹10.08 crore initial public offering (IPO) today, with subscriptions closing on 1 October 2025. The IPO, launched at a fixed price of ₹72 per share, offers a minimum lot size of 1,600 shares, and the listing is scheduled for 7 October 2025 on the BSE SME platform.

Founded in 2014 and converted into a public company in 2023, Dhillon Freight Carrier Limited provides road logistics solutions spanning parcel and less-than-truckload (LTL) services, contract logistics, and fleet rentals. The company operates across eastern and northern India, with a presence in West Bengal, Bihar, Delhi, and Uttar Pradesh, supported by 22 offices and 62 owned vehicles. The promoters, Karan Singh Dhillon, Karamveer Singh Dhillon, and Joyce Singh Dhillon, lead the company’s expansion strategy, with ISO 9001:2015 certification underscoring operational quality.

Dhillon Freight Carrier IPO Structure Shows ₹7.67 Crore Allocation for Fleet Expansion

The issue comprises a fresh issue of 14 lakh shares, representing the entire size of the offer, with no offer-for-sale component. Post-issue equity capital will stand at 39.20 lakh shares. Out of the proceeds, ₹7.67 crore (76.07%) has been earmarked for the purchase and fabrication of 24 new goods transportation vehicles, bolstering the company’s owned fleet. A further ₹1.09 crore (10.82%) will be channelled into general corporate purposes. This reflects the company’s strategic priority of reducing dependence on third-party logistics providers to improve margins.

Dhillon Freight Carrier IPO Revenue Decline in FY24 Followed by FY25 Recovery Highlights Growth Efforts

Dhillon Freight Carrier reported ₹2,991.40 lakh in total revenue in FY23, which declined by 17.3% year-on-year to ₹2,472.93 lakh in FY24 due to weaker freight volumes. However, in FY25, the company registered a mild recovery with ₹2,522.15 lakh revenue, up 2% year-on-year, supported by demand stabilisation in key markets.

Profitability also improved: profit after tax rose from ₹35.72 lakh in FY23 to ₹109.31 lakh in FY24, and further surged 58% year-on-year to ₹172.98 lakh in FY25. Net worth strengthened to ₹522.82 lakh in FY25, while borrowings declined from ₹479.90 lakh in FY24 to ₹333.66 lakh in FY25, reflecting balance sheet improvement.

Earnings per share (EPS) climbed from ₹6.55 in FY24 to ₹6.86 in FY25, and net asset value per share rose from ₹13.88 to ₹20.75, showcasing consistent value accretion for shareholders.

Dhillon Freight Carrier IPO Geographic Concentration and High Operating Costs Remain Key Risks

The company generates 94% of its revenue from Bihar, West Bengal, and Uttar Pradesh, which exposes it to regional demand fluctuations. Operating costs remain a critical challenge, with fuel and truck hire charges accounting for over 85% of total expenses. Additionally, litigations worth ₹27.78 lakh against the company and its promoters are pending, including tax and civil matters.

Past compliance lapses, particularly around Goods and Services Tax (GST) filings, highlight operational risks. Despite fleet expansion, Dhillon Freight Carrier continues to rely significantly on third-party service providers, which may limit cost efficiencies.

Dhillon Freight Carrier’s IPO launch highlights its strategy to scale operations by expanding its owned fleet and reducing reliance on third-party vehicles. While revenue recovery and profit growth in FY25 demonstrate resilience, the company continues to face operational challenges from regional dependence and high cost structures. The listing on the BSE SME platform marks its next step in pursuing broader growth opportunities.

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