Apana Logistics plans to more than double owned reach stackers

Apana Logistics Limited plans to more than double its owned reach-stacker fleet from five to up to 13 by acquiring up to eight machines. The proposed purchase carries an estimated all-inclusive cost of Rs 24.7894 crore, against up to Rs 25 crore earmarked from net issue proceeds for the capital expenditure.

How will Apana Logistics more than double owned reach stackers?

Apana Logistics plans to acquire up to eight reach stackers, which would increase its owned fleet from five to up to 13 machines. Buying all eight units would add 160% to the existing five-unit base and make the owned reach-stacker fleet 2.6 times its current size. The prospectus does not quantify the resulting increase in container volumes or handling throughput.

As of the Draft Prospectus date, Apana Logistics owned 33 fleet vehicles and five reach stackers. The company operates a hybrid model that combines owned infrastructure and equipment with third-party vehicles and machinery hired when required. The additional units would raise the company’s owned reach-stacker count, but Apana Logistics says hired equipment will remain part of its operating model.

The proposed machines are SRSC45V diesel-operated reach stackers. The specification provided in the prospectus gives the model a maximum load capacity of 45 tonnes, a maximum hoisting height of 15,100 millimetres and a machine weight of 71 tonnes. The model is designed for handling International Organization for Standardization, or ISO, 20-foot, 40-foot and 45-foot containers.

Why is Apana Logistics adding owned reach stackers?

Apana Logistics says the new reach stackers are intended to expand handling capacity and reduce reliance on rented equipment, rather than eliminate rentals. The company states that its existing assets limit its ability to meet growing demand and that it can currently execute orders only through a combination of owned and rented equipment. The planned acquisition is therefore dependent on demand supporting the deployment of more owned machinery.

The company provides container handling at container freight stations, inland container depots and ports, as well as road transportation, cargo handling at third-party warehouses, repair services, and truck-trailer operations and maintenance. A reach stacker is container-handling equipment, so the proposed purchase addresses a distinct part of Apana Logistics' operations rather than replacing its 33 owned fleet vehicles.

Apana Logistics identifies greater cargo-handling capacity, improved equipment availability, lower dependence on third-party fleets and potentially shorter delivery lead times as expected benefits. These effects depend on the machines being available from a vendor, deployed at locations where demand exists and operated as planned. The company says the equipment will be allocated across operational locations based on demand and strategic importance.

Apana Logistics has also stated that it will continue to hire market equipment and machinery on a requirement basis. The proposed change is consequently a shift towards a larger owned base of up to 13 reach stackers, while third-party capacity remains available for operational requirements that cannot be met by the owned fleet.

What will Apana Logistics spend on the reach stackers?

Apana Logistics estimates a total cost of Rs 24.7894 crore for eight reach stackers, including applicable taxes and tax collected at source, or TCS. The capital-expenditure object is up to Rs 25 crore, leaving Rs 21.06 lakh between that allocation and the stated estimate. The prospectus describes the Rs 25 crore amount as an upper limit, not as a binding commitment to spend that amount.

The quotation estimates an ex-works unit rate of Rs 2.60 crore, producing an equipment cost of Rs 20.80 crore for eight units. Goods and Services Tax, or GST, at 18% adds Rs 3.744 crore, taking the accessible cost to Rs 24.544 crore. TCS at 1% adds Rs 24.54 lakh to reach the Rs 24.7894 crore total.

The company says neither the equipment purchase nor the other issue objects have been appraised by a bank, financial institution or independent third-party organisation. Its funding requirement is based on management estimates and available quotations. If net issue proceeds are insufficient or equipment costs increase, Apana Logistics says a shortfall may be met through internal accruals and/or unsecured loans.

How fixed are the vendor, price and purchase plan?

The vendor, price and order terms are not fixed because Apana Logistics had not entered into definitive agreements as of the Draft Prospectus date. The estimate relies on a quotation dated September 26, 2025, valid for 60 days from that date. The company says there is no assurance that the same vendor will supply machinery at the quoted cost.

The equipment specification table identifies Sany Heavy Industry India Private Limited, while the source line for the quotation refers to Saini Heavy Industry India Private Limited. The prospectus says the named vendor is not related to Apana Logistics, its promoters, promoter group, directors, shareholders or lead manager. It also says the equipment is to be acquired at an arm's-length price prevailing at the time of procurement.

Management may revise the vendor, machine model, quantity or installation plan when it places actual orders. It may use surplus issue proceeds arising at the ordering stage for other machinery required by the business. Any surplus remaining after meeting machinery costs may be used for general corporate purposes, subject to the stated limit of 15% of the amount raised through the issue.

The company says it is not acquiring second-hand machinery. It also warns that the quotation may lapse and that freight, installation, packaging and forwarding costs could raise the actual purchase cost. Apana Logistics says those additional costs would be met from internal accruals.

When will Apana Logistics deploy the issue proceeds?

Apana Logistics plans to deploy the proceeds for reach stackers during 2025-26 and 2026-27. If it cannot use all or part of the proceeds during 2025-26, the company says it will deploy the balance in 2026-27 towards the stated objects. The prospectus also allows use in a later period where determined by the company in accordance with applicable law.

The proposed purchase can be delayed by the timing of the issue, market conditions, vendor availability and order placement. Apana Logistics specifically identifies the risk that vendors may not provide the equipment in a timely manner, or at all, which could result in time and cost overruns. The company has not raised bridge loans intended to be repaid from issue proceeds as of the Draft Prospectus date.

The issue size will not exceed Rs 50 crore, so a monitoring agency is not required under Regulation 262(1) of the Securities and Exchange Board of India Issue of Capital and Disclosure Requirements Regulations. Apana Logistics says its board and management will monitor use of net issue proceeds through the audit committee. Under Regulation 32 of the Securities and Exchange Board of India Listing Regulations, it will report application of proceeds to the audit committee on a half-yearly basis until all proceeds are used.

Pending use, Apana Logistics says net issue proceeds will be deposited only with scheduled commercial banks included in the Second Schedule of the Reserve Bank of India Act, 1934. The company also confirms that the proceeds will not be used to buy or trade shares of another listed company, invest in equity markets, or invest in real-estate products or real-estate-linked products.

Conclusion

Apana Logistics' plan would increase its owned reach-stacker fleet by eight machines, from five to up to 13, while retaining rentals as a supplementary capacity source. The Rs 24.7894 crore estimate fits within the up to Rs 25 crore capital-expenditure allocation, but the operational outcome depends on demand, deployment and the availability of equipment at an acceptable final cost.

The next disclosed milestones are order placement and use of proceeds across 2025-26 and 2026-27. Apana Logistics has no definitive vendor agreement and may change the vendor, model, quantity or installation plan; it also says any cost escalation beyond the quoted estimate would be funded through internal accruals.