AVG Logistics RI review - (Not Rated)

•    The company is an organized third-party logistics service provider to wide range of customers.
•    It posted growth in its top lines, but bottom lines marked declining trends.
•    It is operating in a highly competitive and fragmented segment, and perhaps that is the reason for declining trends in its bottom lines.
•    Based on its recent financial data, the RI appears aggressively priced.
•    Only well-informed investors may park moderate funds for medium term.

ABOUT COMPANY:
AVG Logistics Ltd., (ALL), is an organized third-party logistics service operator offering logistics solutions to a wide range of customers. It offers Full Truck Load (FTL) and “hub-and-spoke” transportation model and warehousing services to select clients with pan-India distribution network and automated technology systems. Its customers operate in various sectors across India, including automotive and heavy engineering, telecom, food and agro, fast-moving consumer goods (“FMCG”), paint and dairy. 

The company believes its business model enables it to act as a service provider that can comprehensively cover customers’ logistics requirements. It provides solutions that enable its customers to leverage distribution network which optimizes the performance, cost and efficiency of their supply chains, shortening their lead-time to market, resulting in lower inventory costs to the customer.

ALL offers a range of logistics services across transportation, warehousing and supply chain solutions, supported by a pan-India network and technology-enabled operations. The offer document is silent on its employees’ strength data.

ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 3650356 equity shares of Rs. 10 each at a fixed price of Rs. 145 per share to mobilize Rs. 52.93 cr. The RI opens for subscription on June 01, 2026, and will close on June 09, 2026. The company is offering RI in the ratio of 8 for 33 to its eligible stakeholders as of the record date of May 21, 2026. The company is asking for full money on application for number of shares applied. Post allotment, RI shares will be listed on BSE and NSE. The company is spending Rs. 1.10 cr. for this RI process, from the net proceeds, it will utilize Rs. 40.00 cr. for working capital, and Rs. 11.83 cr. for general corporate purposes. 

The RI is solely lead managed by the company itself., and MUFG Intime India Pvt. Ltd. is the registrar to the issue. The RI is underwritten to the tune of Rs. 15 cr. by Systematix Corporate Services Ltd.

Post-RI, company’s current paid-up equity capital of Rs. 15.06 cr. will stand enhanced to Rs. 18.71 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 271.27 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has (on a consolidated basis) posted total income / net profit of Rs. 491.07 cr. / Rs. 31.92 cr. (FY24), Rs. 554.36 cr. / Rs.21.33 cr. (FY25). For 9M of FY26 ended on December 31, 2025, it posted a net profit of Rs15.46 cr. on a total income of Rs. 405.88 cr. Declining trends in its bottom lines remains major concern. It is operating in a highly competitive and fragmented segment.

DIVIDEND POLICY:
The company has (As per BSE website) paid a dividend of 10% (FY23), 12% (FY24 and FY25). It will adopt a prudent dividend policy, based on its financial performance and future prospects. The offer document is silent on its dividend policy.

SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 543910 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 170.95 on May 20, 2026, and opened on an ex-right basis at Rs. 164.45 on May 21, 2026. Since then, it has marked a high/low of Rs. 166.70 / Rs. 152.70. The scrip last closed at Rs. 159.55 as of May 27, 2026. For the last 52 weeks’ it has posted a high/low of Rs. 309.43 / Rs. 121.25. 

The promoters’ holding has been 51.20% for the last two quarters ended on March 31, 2026, against 52.51% for quarter ended September 30, 2025. The counter appears well managed above the RI price, by vested interests to tempt investors.