GB Logistics Commerce Limited, a rising player in India's dynamic logistics landscape, is rolling out its ₹25.07 crore IPO through a fresh issue of 24.58 lakh shares. Setting its wheels in motion from January 24-28, 2025, the company is gearing up for its BSE SME platform debut on January 31, 2025, offering investors a chance to hop aboard India's growing transportation and logistics sector.
With shares priced attractively between ₹95-102 and a lot size of 1,200 shares, the company is making entry accessible to various investor segments - retail investors can start their journey with ₹122,400 per lot, while HNIs need to commit ₹244,800 for two lots. As India's logistics sector continues to evolve with rising e-commerce demands and infrastructure development, GB Logistics' market entry could present an interesting opportunity for investors looking to capitalize on the country's transportation boom.
GB Logistics Commerce Limited IPO is a fundraise worth ₹25.07 crores comprising purely of a fresh issue with 123,600 shares reserved for the market maker Svcm Securities Private Limited. Qualified Institutional Buyers are being offered not more than 50% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 15% of the net issue. The IPO will be available for subscription from January 24, 2025, to January 28, 2025, providing an opportunity for investors looking to gain a stake in the logistics sector.
| GB Logistics Commerce IPO date | January 24, 2025 - January 28, 2025 |
| Price band / Fixed price | ₹95 to ₹102 per share |
| Face value | ₹10 per share |
| Lot size | 1200 shares |
| Issue type | Book Built Issue IPO |
| Fresh issue size | 24,57,600 shares amounting to ₹25.07 crores |
| Total issue size | 24,57,600 shares amounting to ₹25.07 crores |
| Listing at | BSE SME |
| Market maker portion | 123,600 - Svcm Securities Pvt Ltd |
| Shareholding post-issue | 81,94,448 shares |
| Shareholding pre-issue | 57,36,848 shares |
The GB Logistics Commerce Limited IPO opens for subscription on January 24, 2025, and closes on January 28, 2025, with allotment scheduled for January 29, 2025.
| IPO open date | January 24, 2025 (Friday) |
| IPO close date | January 28, 2025 (Tuesday) |
| Basis of allotment | January 29, 2025 (Wednesday) |
| Initiation of refunds | January 30, 2025 (Thursday) |
| Credit of shares to Demat account | January 30, 2025 (Thursday) |
| Listing date on BSE / NSE SME | January 31, 2025 (Friday) |
| Cut-off time for UPI mandate confirmation | 5 PM on January 28, 2025 (Tuesday) |
GB Logistics Commerce Limited, established in 2019, has carved out a niche in the logistics sector by providing comprehensive transportation solutions through its qualified drivers, diverse fleet, and flexible charter network. The company specializes in full truckload freight services for large and medium-sized enterprises, offering specialized handling capabilities including godown-to-godown transport and deliveries to challenging locations through its Out of Delivery Area (ODA) expertise.
Beyond its core logistics operations, the company has strategically diversified into agricultural commodity trading, leveraging its transportation network to capitalize on trading opportunities in the agricultural sector. With a lean team of 39 full-time employees as of January 2024, GB Logistics has built an efficient operational model that combines both owned and third-party transportation resources to deliver reliable logistics solutions while maintaining multiple revenue streams.
GB Logistics Commerce Limited plans to strategically deploy its IPO proceeds across several key operational areas, including the reduction of existing debt through prepayment or repayment of certain outstanding borrowings, strengthening its working capital position, expanding its fleet through the purchase of new truck chassis and bodies, and allocating funds for general corporate purposes. This comprehensive utilization strategy aims to enhance operational efficiency, reduce financial burden, and support the company's growth trajectory in India's expanding logistics sector.
The GB Logistics Commerce Limited IPO’s key performance indicators, as on March 31, 2024, reflect the company's financial health with a Return on Equity of 27.36%, Return on Capital Employed (ROCE) at 14.51% and a Debt-to-Equity ratio of 0.88. The Return on Net-Worth (RoNW) stands at 27.36%, and the Price to Book Value was 3.29. The company’s market capitalisation is ₹83.58 crores.
| Period Ended | September 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 50.85 | 115.63 | - | - |
| Assets | 59.28 | 58.60 | - | - |
| Net Worth | 20.55 | 17.77 | 1.8 | 1.03 |
| Profit After Tax | 2.53 | 4.86 | 0.77 | 0.96 |
| Reserves & Surplus | 14.81 | 12.04 | - | - |
| Total Borrowing | 20.07 | 15.72 | 4.92 | 1.18 |
Amount in ₹ crores
The pre-IPO EPS is at ₹8.48 while the post-IPO EPS will be ₹6.17. Similarly, the pre-IPO Price to Earnings ratio is 12.03 and will become 16.53 post-IPO.
GB Logistics Commerce Limited benefits from a robust fleet and efficient logistics infrastructure, which ensures reliable and timely delivery services. This is complemented by a highly experienced and skilled team, able to navigate challenges in the logistics and transportation sectors. The company has established strong strategic partnerships, enhancing its operational flexibility and growth prospects. These alliances, along with its strong technology backbone, enable the company to offer diverse, customizable logistics solutions tailored to various industries, including agriculture. Its experienced leadership and consistent financial performance further contribute to its growth potential and market position.
Additionally, the company's commitment to quality control, ethical business practices, and high standards in service delivery ensures client satisfaction and trust. GB Logistics has also built a strong market presence with its ability to serve remote and challenging delivery locations. The expanding logistics market, fueled by increasing demand for full truckload services, provides significant opportunities for the company to increase its market share. The company’s diversified revenue streams, especially in agricultural commodity trading, further stabilize its financial position.
GB Logistics Commerce Limited faces high competition from established players in the logistics industry, which could erode market share and profitability. The company is highly dependent on key customers, and any changes in these relationships could significantly impact its revenue streams. Its limited geographical presence and reliance on third-party resources for transportation services can hinder scalability and operational consistency. Furthermore, the company faces exposure to fluctuations in the agricultural commodities market and economic downturns, which could affect demand for logistics services.
Additionally, legal and recovery proceedings involving the promoter could create reputational risks and potential financial liabilities. The recent acquisition of a material subsidiary adds integration risks and operational challenges. The business is also vulnerable to fluctuations in fuel prices, interest rates, and regulatory changes, which may affect operational costs and profitability. Furthermore, the company faces risks from external disruptions, such as natural calamities and pandemics, which could significantly impact operations and financial stability.
Investing early in GB Logistics Commerce Limited offers a chance to be part of the company's growth in the transportation and logistics sector. However, investors should thoroughly evaluate factors such as the company’s operational history, financial stability, industry trends, and growth plans, while aligning the opportunity with their personal investment goals and risk tolerance. It is advisable to carefully review the offer document and consult with a financial advisor, if necessary, to make a well-informed decision regarding participation in this IPO.
What is the GB Logistics Commerce Limited IPO?
The GB Logistics Commerce Limited IPO is an BSE SME offering consisting of 24.58 equity shares with a face value of ₹10, aiming to raise ₹25.07 crores. The price band has been set between ₹95 to ₹102 per share, with a minimum order quantity of 1200 shares. This IPO will be open for subscription from January 24, 2025, to January 28, 2025. SKI Capital Services Limited is the book-running lead manager, Maashitla Securities Private Limited is the registrar while Svcm Securities Private Limited is the market maker.
When will the GB Logistics Commerce IPO open?
The GB Logistics Commerce Limited IPO will open for subscription on January 24, 2025, and will close on January 28, 2025.
When is the GB Logistics Commerce IPO listing date?
The tentative listing date for the GB Logistics Commerce Limited IPO is Friday, January 31, 2025.
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