The GB Logistics IPO has already generated much excitement in the market as investors look forward to its opening on January 24, 2025, and closing on January 28, 2025. This IPO gives an opportunity to become part of a growing logistics and agricultural commodity trading company in India. GB Logistics Commerce Limited started its business back in 2019 in logistics and commodity trade. The Company is involved in freight solutions along with trading commodities. Diversifying the Agricultural Trading segment, the company intends to expand using expertise and experience; hence, this IPO shall be an important milestone on this growth trajectory for the Company.
GB Logistics IPO Date events
The GB Logistics IPO dates are as follows:
- Opening of IPO Date: January 24, 2025
- IPO Closing Date: January 28, 2025
- Basis of Allotment: January 29, 2025
- Refund start date: January 30, 2025
- Demat Share Transfer: January 30, 2025
- Listing Date: January 31, 2025
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GB Logistics IPO Issue Size
- IPO Total Size: 24,57,600 shares (₹25.07 crores)
- Fresh Issue: 24,57,600 shares (₹25.07 crores)
- Face Value: ₹10 per share
- Issue Price Band: ₹95 to ₹102 per share
- Lot Size: 1200 Shares
- Listing Platform: BSE SME
The raised amount will be utilised for enhancing the infrastructural setup of the company and paying back debt along with working capital.
GB Logistics IPO Details: Proceeds Usage
The GB Logistics IPO proceeds amount to ₹25.07 crores as divided below;
1. Working Capital Requirements
The operational expenses of the critical majority part of the corpus will go into maintaining the fleet, fuel prices, and general activity running the business. All operations are well taken care of and support the growth curve of the company.
2. Repayment of loans
The firm would pay off the existing debts to reduce financial liabilities. This would reduce interest expenses while increasing profit. It would also add up to the overall good health of business finances.
3. Capital Expenditure
The company would use the net proceeds to purchase truck chassis and truck bodies and expand the asset base of the business.
4. Corporate Goals Common
The balance amount can be used for general corporate purposes. It, therefore, be used for administrative costs, strategic ventures, and business operations expansion. These funds will also be used for branding, technology upgrades, and other general corporate activities.
GB Logistics IPO Reservation Details
The IPO reservation details are as follows:
- Qualified Institutional Buyers (QIBs): 50%
- Non-Institutional Investors (NIIs): 15%
- Retail Investors: 35%
GB Logistics Promoter Holdings
The promoter, Mr. Prashant Natwarlal Lakhani of GB Logistics Commerce Limited holds a significant stake in the company, ensuring strong governance. The GB Logistics IPO Shareholder quota are:
- Pre-IPO Promoter Holding: 74.85%
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- Advance Technical Analysis
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GB Logistics IPO Details: Company Overview
GB Logistics Commerce Limited operates dynamically in the fields of logistics services and commodity trade in agricultural produce. Logistics serves as a freight provider with a focus on full truckload transport. They mainly service small to medium-sized enterprises (SMEs) as well as large corporations, and through their operation, goods can easily be moved to all corners.
The second leg of the company is agricultural commodity trading, where it trades essential staples like grains and oilseeds. Diversification, in this case, not only strengthens revenue streams but also reduces dependency on a single sector.
GB Logistics has built a versatile fleet of light trucks, heavy trucks, and trailers to accommodate different freight requirements. Its wholly-owned subsidiary, GB Hospitality (India), also contributes to its overall revenue.
As of September 30, 2024, the company boasted a lean labour force of just 39 individuals, which had a very small and efficient setup. The GB Logistics IPO valuation reflects its growth potential, leveraging strong financials, sector presence, and strategic fund utilization.
Financial Performance of GB Logistics IPO
In the RHP, the Company’s financial statistics are as follows.
Particulars | September 30, 2024 | March 31, 2024 | March 31, 2023 | YoY Change (FY24 – FY23) |
---|---|---|---|---|
Revenue from operations | 5,083.56 | 11,562.48 | 4,029.93 | 187% |
EBITDA | 455.96 | 926.62 | 151.67 | 511% |
Total Long-Term Borrowings | 463 | 110.41 | 91.53 | 21% |
PAT | 252.8 | 486.24 | 76.86 | 533% |
EBITDA Margin (%) | 8.97% | 8.01% | 3.76% | 4.25% |
PAT Margin (%) | 4.97% | 4.21% | 1.91% | 2.30% |
ROE (%) | 12.30% | 27.36% | 42.65% | -15.29% |
ROCE (%) | 6.22% | 14.51% | 11.44% | 3.07% |
*(in ₹ lakhs)
Analysis:
- Revenue Fluctuations: In FY 2024, the company managed to earn ₹11,562.48 lakhs, and for the first half of FY 2025, ₹5,083.56 lakhs, with strong scale-ups in operations.
- High Growth in EBITDA: Due to good revenue, EBITDA has increased by a high growth of 511% in FY24 on a year-on-year basis.
- Growth in Borrowing: From ₹91.53 lakhs in FY23, long-term borrowings expanded to ₹110.41 lakhs in FY24 by 21%, thus showing growth based on a borrowing expansion mechanism.
- High PAT Growth: PAT increased to a great extent by 533%, from ₹76.86 lakhs (March 2023) to ₹486.24 lakhs (March 2024), which shows profitability.
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GB Logistics IPO Risk Factors
The investors have to carefully consider the potential risks associated with this upcoming IPO of GB Logistics:
- Vulnerability of Agricultural Commodity Trading to Price Fluctuations: The agricultural commodity trading is one of the most significant revenue streams of the company and is very sensitive to price volatility, seasonal variations, and vagaries of market conditions.
- Dependence on Third-Party Logistics Service Providers: Its operations are very much dependent on third-party logistics service providers, which may adversely affect cost control, operational effectiveness, and quality of service.
- Short operating experience: GB Logistics is compared with experienced logistics competitors. Hence, it is on a shorter track of its operations, so long-term performance cannot be anticipated.
- Volatility in freight rate: the freight rate is volatile, determined by macro factors such as fuel prices and inflation, which would have a profound impact on profitability.
- Compliance and Regulatory: In a highly regulated industry, the scope for the risk of non-compliance would invite fines and potential disruption to the operations of the business
Investors will have to consider this risk aspect before investing.
GB Logistics IPO Details: Contact Information
Registered Office Details
B-3, Saptak Plaza, Shivaji Nagar, Nagpur – 440010, India
Contact Person:
Payal Maheshwari
Company Secretary and Compliance Officer
Telephone: 9881078877
Email: compliance@gblogisticsindia.com
Website: www.gblogisticsindia.com
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Frequently Asked Questions – FAQs
1. What is the lot size of the GB Logistics IPO?
The lot size is 1,200 shares, which means a minimum investment of ₹1,22,400.
2. On which date will GB Logistics IPO be listed on the stock exchange?
GB Logistics IPO will be listed on January 31, 2025.
3. How much percent of the IPO is allocated to retail investors?
35% of the net issue size is allocated to retail investors.
Reference:
https://www.bseindia.com/publicissue.html
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