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Repono

• Repono is coming out with an initial public offering (IPO) of 27,79,200 equity shares in a price band Rs 91-96 per equity share.
• The issue will open on July 28, 2025 and will close on July 30, 2025.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 9.10 times of its face value on the lower side and 9.60 times on the higher side.
• Book running lead manager to the issue is Wealth Mine Networks.
• Compliance Officer for the issue is Mistry Jinesh Deepakkuma.

Profile of the company

Repono specialized in offering warehousing and liquid terminal services to India's oil and petrochemical sector. It provides a 360-degree solution for the storage of critical petroleum products. It provides its clients consultancy, engineering, Operation and Maintenance (O&M) and value-added logistics services. It serves some of the top Oil and Petrochemical Companies in India, the company has been recognised as one of the leading service providers for the warehousing and oil terminating sector in India. It provides regular consulting services to a large German petrochemical company, is the world’s largest FFS machinery supplier.

The company is providing series across the Oil value chain. It is doing O&M of the (a) Crude Oil Terminal facility for one of the government-owned enterprise engaged in oil sector. It is also handling (b) Petro, Diesel, ATF and Ethanol for from one of the largest crude oil and natural gas producer. It also handles the very prestigious off-site terminal for Public Sector Enterprise. It is also into O&M of petrochemical warehousing and its customers are belonging to crude oil and natural gas industry, Public Sector Enterprise and others.

The company is doing the O&M of the FFS packaging line. FFS is the most advanced polymer packaging machine in the world. The company provides O&M service of the FFS bagging line in India which gives them edge over their competitors. The company has also forayed into the O&M of the Lube Oil Blending plant and warehousing for IOCL at Chennai. IOCL’s Lube Plant at Chennai is Asia’s largest Lube Oil plant and one of the most prestigious projects in the Lube oil sector in India.

Proceed is being used for:

• Funding capital expenditure towards purchase of forklift, hand pallet trolley, reach stacker
• Funding of capital expenditure requirements of the company towards set up of warehouse racking system
• Funding towards the development of software for warehouse management
• Funding the working capital requirements of the company
• General corporate purpose

Industry Overview

The warehousing, industrial, and logistics (WIL) sectors are projected to be crucial for attaining India's vision of being a $5 trillion economy by FY25. The expansion of this industry is likely to be aided by a robust economy, government efforts to improve infrastructure, and a favourable business environment. Increasing consumerism and a huge consumer base are fostering the growth of retail and e-commerce in India. The Indian retail sector's market size is predicted to increase at a CAGR of 9% between 2019 and 2030, totaling more than $1.8 trillion. Large international funds and corporations have invested in warehousing developers and operators to grow their reach and geographical footprint, which are the sector's key differentiators.

The Government of India has taken many initiatives to strengthen the sector's infrastructure, including the establishment of dedicated freight corridors and the extension of road and rail networks, to improve connectivity and decrease travel times. Another critical governmental intervention has been the sector's digital transformation, projects such as Digital India, Bharat Net, and the National Logistics Portal would aid in the industry's digitization. Furthermore, the government has announced the establishment of logistics parks and warehouses across the country to provide appropriate storage facilities for enterprises. The warehouse sector has grown rapidly in recent years, fuelled by the expansion of e-commerce, solid infrastructure, the adoption of GST, and the advent of organized retail. The recently implemented National Logistics Policy intends to reduce India's logistics costs from the double digits of GDP to the single digits by 2030. 

The warehousing and logistics industry in India is a dynamic and rapidly growing sector that is expected to play an increasingly important role in the country's economy. Despite some challenges, the sector is well-positioned for long-term growth and presents exciting opportunities for investors and businesses. With the government's focus on improving infrastructure and the rise of e-commerce, the sector is expected to be a key driver of economic growth in the country. Moreover, with the increasing adoption of technology and the government's push for a digital economy, there is also significant potential for logistics players to leverage data analytics, artificial intelligence, and machine learning to improve operational efficiency and enhance customer experience. There are also opportunities for foreign investment as international companies look to tap into India's growing logistics market. The government has made it easier for foreign companies to invest in the sector by allowing 100% foreign direct investment in logistics parks and warehouses.

Pros and strengths

Domain expertise: The company takes utmost pride in serving its clients by leveraging on its domain expertise. Having immense knowledge and experience of the industry, the company understands the nitigrities of the industry and works towards offering the best solution. Its team members have worked in some of the top multinational companies in India and abroad in leadership roles. It understands its client’s product, business cycle, HSE requirements etc. which today enables it to provide them a solution which is closer to their business.

Integrated solutions: It is the company in India and amongst the very few in the world to provide Designing to EPC to commissioning and operations solutions. It brings its expertise of operations of warehouse into the designing and engineering of the warehouse and vice versa.

Scalable services: It render services that can be scaled to the needs of customers. Based on the industry requirement and consignment size, it customize solutions to meet their expectations. The company is capable of providing personalized solutions to fulfil the demands of its client and contribute towards building and optimizing their supply chain.

Risks and concerns

Maximum revenue comes from limited customers: The company has garnered 82.45%, 76.36% and 90.41% of its total revenue from top 5 customers in FY25, FY24 and FY23 respectively. While it typically has long-term relationships with its customers, it has not entered into long-term agreements with its customers and the success of its business is accordingly significantly dependent on it maintaining good relationships with its customers and suppliers. The actual sales by the company may differ from the estimates of its management due to the absence of long-term agreements. The loss of one or more of these significant or key customers or a reduction in the amount of business it obtains from them could have an adverse effect on its business, results of operations, financial condition and cash flows.

Highly depends on its few key suppliers: The company depends on a few suppliers for procurement of services, FY 2024-25, FY 2023-24 and FY 2022-23 contributed for 96.76%, 100% and 98.74% respectively of its services. It has not entered into long-term contracts with its suppliers and prices are normally based on the quotations it receives from various suppliers. Since it has no formal arrangements with its suppliers, they are not contractually obligated to supply their services to it and may choose to sell their services to its competitors. Since its suppliers are not contractually bound to deal with it exclusively, it may face the risk of its competitors offering better terms to such suppliers, which may cause them to cater to its competitors alongside the company.

Geographical constrain: Majority of the company’s revenue is generated form Karnataka, Punjab and Gujarat i.e., Rs 120797.83 thousands which constituting 90.98% of total revenue for operation for the year ended on March 31, 2025. Such concentration of revenue in Karnataka, Punjab and Gujarat may have an adverse effect. Further, drastic change in Taxes and other levies imposed by State Government of Karnataka, Punjab and Gujarat as well as other financial policies and regulations, political and deregulation policies, if changed, could harm business and economic conditions. However, the composition and revenue generated from various states might change as it continues to add new customers in the different parts of India.

Outlook

Repono is a warehousing and logistics company in India, specializing in storage solutions for the oil and petrochemical sectors. The company offers a comprehensive range of services, including warehousing, secondary transportation, and logistics support, catering to industries such as petrochemicals, oil & gas, lube oil, and specialty chemicals. The company has a strong partnership network coupled with customer-centric approach. On the concern side, the company is dependent on a few numbers of customers for revenue from operation. The loss of any of these large customers may affect its revenues and profitability. The company highly depends on its few key suppliers. The company has not entered into long-term agreements with its suppliers. In the event it is unable to procure adequate services at competitive prices its business, results of operations and financial condition may be adversely affected.

The company is coming out with a maiden IPO of 27,79,200 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 91-96 per equity share. The aggregate size of the offer is around Rs 25.29 crore to Rs 26.68 crore based on lower and upper price band respectively. On performance front, revenue from operations increased by 50.31%, from Rs 340,058.58 thousand in FY24 to Rs 511,154.64 thousand in FY25. This growth was driven by increased scale of operations, execution of new high-value contracts, and continued expansion into new geographies. Moreover, profit after tax increased 23.12%, from Rs 41,821.63 thousand in FY24 to Rs 51,490.41 thousand in FY25.

The company serves all the major Oil, Gas and Petrochemical companies in India. The company would further extend will leverage its solid standing with client and maximize the business potential with them. Like for HPCL Mittal, the company is handling their Polymer Warehousing but Crude oil and Petroleum terminal is still not with it. The company will focus on adding new products like, Fertilizer, Cement, Agro Chemicals etc., which similar skill sets as Oil and Petrochemicals in its portfolio. Going forward, the company plans to add Two Million Square foot warehouses across India for chemical and petrochemical product. It already has about 0.2 million square foot and will be rapidly expanding the footprint.