Blue Water Logistics IPO is set to open for subscription on May 27, 2025, and will remain open until May 29, 2025. This book built issue is generating significant interest in the market due to the company’s robust financial performance, strategic sector positioning, and a healthy Grey Market Premium (GMP) of ₹12. Priced in the range of ₹132 to ₹135 per equity share, the issue is expected to fetch ₹40.5 Crores, entirely through a fresh issue of 30 lakh equity shares.

The logistics sector in India has shown consistent growth, and Blue Water Logistics Limited aims to further this trajectory by offering end-to-end project logistics, Supply Chain Management (SCM), warehousing, and multi-modal transport services through sea, air, and land. This positions the company as a comprehensive logistics service provider with experience across key domains such as freight forwarding, project management, warehouse management, distribution, and transportation.

With a lot size of 1,000 shares, retail investors need a minimum investment of ₹1,35,000, while High-Net-Worth Individuals (HNIs) are required to invest at least ₹2,70,000 for two lots. The expected market capitalization at the upper price band is estimated at ₹148.5 Crores.

The company has successfully raised ₹11.27 Crores from Anchor Investors at the upper price band of ₹135. A total of 8,35,000 equity shares were allocated to these investors, showcasing institutional confidence in the offering. Anchor allocation is drawn from the Qualified Institutional Buyers (QIBs) reservation category, highlighting the demand even before retail bidding begins.

Financial Highlights

The company’s financial performance shows a strong upward trajectory.

• Revenue from operations grew from ₹8,472.21 Lakh in FY22 to ₹19,628.59 Lakh for the period ended March 31, 2025.

• EBITDA rose from ₹240.10 Lakh in FY22 to ₹1,885.12 Lakh by FY25.

• Profit After Tax (PAT) increased from ₹104.31 Lakh in FY22 to ₹1,067.08 Lakh by FY25.

This consistent rise in revenue and profitability underlines the company’s growth potential and operational efficiency.

The pre-issue EPS stands at ₹13.34, while the post-issue EPS is ₹9.70. At the upper band of ₹135, the pre-issue Price to Earnings (P/E) ratio comes to 10.12x, and post-issue P/E is 13.92x, which is significantly lower than the industry average P/E of 113x, signaling a moderately priced IPO. The Return on Capital Employed (ROCE) for FY24 is 30.00%, and the Return on Equity (ROE) is 72.02%, showcasing strong returns for shareholders.

Grey Market Premium (GMP) and Listing Outlook

As of May 19, 2025, the GMP for Blue Water Logistics IPO stands at ₹12, which indicates an expected listing price of ₹147—an 8.88% premium over the issue price. However, it’s important to note that GMP is not officially regulated and depends heavily on market sentiment and demand-supply dynamics in the unorganised grey market. Investors should use this information for educational purposes only, as no firm price discovery happens until the actual listing.

IPO Allotment and Listing

The IPO allotment date is May 30, 2025. Investors can check their allotment status through the registrar’s website—Maashitla Securities Pvt Ltd. To do this:

• Go to the IPO allotment status page.

• Select “Blue Water Logistics IPO” from the dropdown menu.

• Enter your application number, PAN, or DP Client ID.

• Click submit to view your allotment result.

The shares are expected to be listed on NSE SME on or about June 3, 2025. The registrar and lead manager have provided clarity that the final issue price will usually align with the upper end of the price band, especially since the anchor investors subscribed at ₹135 per share.

Use of IPO Proceeds

Blue Water Logistics intends to utilize the IPO proceeds for the following purposes:

1. ₹1,051.73 Lakh will be allocated for purchase of vehicles and body-building costs, strengthening the company’s logistical capabilities.

2. ₹2,000 Lakh is earmarked for working capital requirements, supporting day-to-day operations and business expansion.

3. The remaining funds will be used for general corporate purposes, ensuring flexibility and liquidity for future strategic goals.

Promoters and Management Team

The company is promoted by Mr. Laxmi Narayan Mishra (Chairman and Whole-Time Director) and Mr. Lalit Panda (Managing Director), who bring 13 years and 7 years of experience, respectively, in the logistics and SCM industry. Their deep domain expertise, strong network, and strategic decision-making have played a critical role in the company’s consistent growth and client satisfaction.

Market Maker and Registrar

The IPO has been supported by notable market intermediaries.

• Smart Horizon Capital Advisors Pvt Ltd is acting as the Book Running Lead Manager (BRLM).

• Maashitla Securities Pvt Ltd serves as the Registrar to the Issue.

• Shreni Shares Ltd is appointed as the Market Maker, ensuring liquidity for the shares post-listing on the SME platform.

Risks and Recommendations

While the IPO offers a compelling growth story, it's categorized as moderate risk due to sectoral challenges such as fuel price volatility, supply chain disruptions, and macro-economic slowdowns. However, the strong financials, growing revenues, healthy ROE/ROCE, and early anchor investor participation all reflect positively on the company's future potential.

Risk-tolerant investors aiming for listing gains may consider applying for the IPO. Given the current Grey Market Premium and robust financial indicators, moderate gains can be expected on listing day.

Conclusion

In conclusion, Blue Water Logistics Limited is entering the public market with strong fundamentals, a proven management team, and a clear use of proceeds that align with its expansion goals. With a reasonable valuation, 8.88% GMP, and solid anchor backing, the IPO presents a moderately attractive opportunity for investors with a short to medium-term horizon.

As always, investors should evaluate their risk appetite, review company fundamentals, and consult financial advisors before making investment decisions in IPOs.

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The Current active IPO are Aegis Vopak Terminals, Schloss Bangalore, Unified Data - Tech Solutions.

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