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IPO Red Flags: Damani & Dhawan's Risky Logistics Plays
4 Nov
Summary
- Radhakishan Damani and Ashish Dhawan invested in struggling new IPOs.
- Both companies, Horizon Industrial Parks and Allcargo Global, are underperforming.
- Damani's Horizon bet is a 'repair job', Dhawan's Allcargo is a 'price call'.
Radhakishan Damani and Ashish Dhawan have made notable investments in two recent, underperforming IPOs. Damani, known for DMart, acquired a stake in Horizon Industrial Parks, a company focused on building and leasing warehouses. This venture is currently trading 28% below its initial public offering (IPO) price.
Ashish Dhawan, founder of ChrysCapital, invested in Allcargo Global, an overseas freight arm. This company is performing even worse, sitting 48% below its post-listing closing price. The article contrasts these two investments: Horizon is seen as a 'repair job' with improving financials, while Allcargo Global is a speculative 'price call' dependent on global freight rates.
Horizon Industrial Parks, backed by Blackstone, has been working to reduce its debt, having slashed borrowings by 49% using IPO funds. Despite an 81% operating margin, the company has historically struggled with interest and depreciation costs, though it reported a Rs 14 crore profit in its most recent quarter.
Allcargo Global, the world's largest consolidator of part-container cargo, faces significant headwinds. Sales fell 9% in FY26, resulting in a Rs 290 crore net loss. The company's performance is heavily influenced by volatile freight rates and geopolitical events, leading to a CRISIL downgrade in September 2026.
Both investors have yet to capture the bottom of these stocks. Key dates to watch include Allcargo Global's September quarter earnings report by November 14, 2026, and the expiry of pre-IPO lock-in shares for Horizon around February 2027. The promoter stake in Horizon is also subject to a USD 480 million loan covenant.
