CJ Logistics Initiates Overseas Stock Market Listing with IPO for Investment in Indian entity CJ Darcl

• Korean logistics company to pursue listing of Indian subsidiary, CJ Darcl on an overseas stock market, submitting pre-IPO review documents to Indian stock market regulator.
• Leverages relationship with customers and grows the multimodal capabilities with 187 branches across India as of March 31, 2023.
• INR 42,158.26m in revenue in FY 2023, with revenue growth rate of 14.52% in FY 2023 compared to FY 2022.
• High growth expected in line with growing importance of logistical competitiveness and "Make in India" initiative.

SEOUL, South Korea, Nov. 29, 2023 /PRNewswire/ -- CJ Logistics Corporation ("CJ Logistics") is accelerating expansion into India, one of its key strategic countries. CJ Logistics' Indian subsidiary CJ Darcl Logistics Limited ("CJ Darcl") plans to secure future investment capital through an initial public offering (IPO). 

CJ Logistics announced that CJ Darcl had successfully submitted a pre-IPO review request to the Securities and Exchange Board of India (SEBI) under title Draft Red Herring Prospectus. 

CJ Logistics took a significant step into the Indian logistics market in 2017 when it acquired a 50% stake in Indian Entity Darcl Logistics Limited and consequently name changed to CJ Darcl Logistics Limited. As of March 31, 2023, CJ Darcl has 187 branches across India, providing comprehensive logistics services, including road, railway, and shipping/coastal transportation, warehousing and distribution (W&D), and project logistics, to more than 2,900 client companies.

CJ Darcl has a competitive edge in being able to offer multimodal services, which include nationwide land and railway transportation, that contribute to its growth. CJ Darcl achieved INR 42,158.26 million in revenue from operations for the year ended March 31, 2023, and INR 1,087.55 million in operating profit for 2022, reflecting an revenue growth rate of 14.52% in FY 2023 compared to FY 2022.

India, surpassing China, has become the world's most populous country with approximately 1.43 billion people and continues to experience economic growth, achieving a growth rate of 7.2% last year, according to credit rating agency S&P Global Ratings.

The Indian government's focus on promoting industry is also expected to have a favorable impact. The government has been promoting its "Make in India" policy to boost manufacturing, and as a result, competitiveness in the logistics industry is being recognized as a crucial factor. In line with this, the government also introduced the National Logistics Policy last year, demonstrating a strong commitment to improving the logistics landscape.

DISCLAIMER

CJ Darcl Logistics Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, an initial public offering of its equity shares (the "Equity Shares"), and has filed a draft red herring prospectus dated September 27, 2023 (the "DRHP") with the Securities and Exchange Board of India ("SEBI") on September 28, 2023. The DRHP is available on the website of SEBI at www.sebi.gov.in and the website of the book running lead managers, i.e., ICICI Securities Limited, Axis Capital Limited and Mirae Asset Capital Markets (India) Private Limited at www.icicisecurities.com, www.axiscapital.co.in and https://cm.miraeasset.co.in/, respectively and the websites of BSE Limited and National Stock Exchange of India Limited at www.bseindia.com and www.nseindia.com, respectively. Further, the DRHP is available on the website of CJ Darcl Logistics Limited at https://cjdarcl.com/investor-relations/.

Any potential investor should note that investment in Equity Shares involves a high degree of risk. Specific attention is drawn to "Risk Factors" on page 32 of the DRHP. Any decision to invest in Equity Shares described in the DRHP may be made only after the red herring prospectus has been filed with the Registrar of Companies, Delhi and Haryana ("RoC") and must be made solely on the basis of such RHP as there may be material changes from the DRHP to the RHP.

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