Blue Water Logistics Limited, a company known for its end-to-end project logistics and supply chain management (SCM) solutions, has launched its Initial Public Offering (IPO) on May 27, 2025, and the subscription will remain open till May 29, 2025. The company, which operates in Sea, Air, and Land logistics, is raising ₹40.5 Crores through a Book Built Issue, consisting entirely of a Fresh Issue of 30 lakh equity shares. The company’s shares are slated to be listed on the NSE SME platform, with a tentative listing date of June 3, 2025.

The IPO price band is fixed between ₹132 and ₹135 per share, and the market capitalisation at the upper band price of ₹135 will be ₹148.5 Crores. Each lot consists of 1,000 shares, which means that retail investors must apply for a minimum of ₹1,35,000, and High-Net-Worth Individuals (HNIs) must invest in 2 lots (2,000 shares), amounting to ₹2,70,000. This offering has been structured keeping in mind both retail and institutional investor interests.

Smart Horizon Capital Advisors Private Limited is acting as the Book Running Lead Manager (BRLM) for the issue, while Maashitla Securities Private Limited is the Registrar. Additionally, Shreni Shares Limited has been appointed as the Market Maker, a crucial component for liquidity in SME issues.

As of 10:30 AM on May 28, 2025, the Blue Water Logistics IPO had been subscribed 1.33 times, reflecting early investor interest. The subscription numbers are expected to increase further as the IPO progresses toward the final day.

The company has also attracted significant attention from Anchor Investors, raising ₹11.27 Crores by allotting 8,35,000 shares at ₹135 per share, indicating strong institutional confidence. These shares are allocated from the Qualified Institutional Buyers (QIBs) portion.

As per the latest update, the Grey Market Premium (GMP) for the Blue Water Logistics IPO is around ₹12, implying an expected listing price of ₹147, which is about 8.88% higher than the upper issue price. While GMP is an unofficial and unregulated indicator, it is still followed by many retail investors as a sign of market sentiment. However, it's important to note that GMP does not guarantee listing performance, and investors are advised to proceed with caution.

Company Overview and Business Model

Blue Water Logistics Limited is primarily engaged in logistics solutions, offering a full spectrum of services in freight forwarding, SCM, project management, transportation, warehousing, and distribution. The company’s operations span across Sea, Air, and Land transport, making it a one-stop logistics provider for a diverse set of industries.

The core strengths of Blue Water Logistics lie in its robust operational capabilities, technological adoption, and a team of industry veterans. The Chairman and Whole-Time Director, Mr. Laxmi Narayan Mishra, brings over 13 years of industry experience, while the Managing Director, Mr. Lalit Panda, has 7 years of sectoral expertise. This leadership team is credited with establishing strong client relationships, streamlining operations, and expanding business across regions.

Financial Highlights

The company has demonstrated steady financial growth over the past few years. The revenue from operations has increased from ₹8,472.21 Lakh in FY22 to ₹19,628.59 Lakh in the period ending March 31, 2025. The EBITDA grew from ₹240.10 Lakh in FY22 to ₹1,885.12 Lakh by FY25, while the Profit After Tax (PAT) rose from ₹104.31 Lakh to ₹1,067.08 Lakh over the same period. These numbers clearly showcase the scaling and profitability of Blue Water Logistics Limited.

In terms of valuation, the Pre-Issue EPS (FY24) is ₹13.34 and the Post-Issue EPS stands at ₹9.70. The Pre-Issue P/E ratio is 10.12x, while the Post-Issue P/E ratio is 13.92x, significantly lower than the industry average P/E of 113x, indicating an attractively priced offering.

Key financial indicators like ROCE (30.00%), ROE (72.02%), and RoNW (52.95%) further strengthen investor confidence. These numbers highlight the company’s operational efficiency, return on investments, and sound financial health.

IPO Objectives

The net proceeds from the IPO will be used for:

1. Funding capital expenditure of ₹1,051.73 Lakh for vehicle purchases and body-building.

2. Working capital requirements of ₹2,000.00 Lakh.

3. General corporate purposes to support the company’s expansion and infrastructure enhancement.

These objectives align with the company’s goal of capacity enhancement and service expansion, especially in a sector like logistics, which is poised for growth in a post-pandemic and e-commerce-driven economy.

Allotment & Listing

The Blue Water Logistics IPO allotment date is expected to be May 30, 2025. Investors can check their allotment status online by visiting the registrar’s website and entering details like Application Number, PAN, or DP Client ID. Post allotment, the shares are expected to be listed on June 3, 2025 on the NSE SME platform.

IPO Review & Final Recommendation

Based on the company’s strong financials, healthy growth metrics, and reasonable valuations, the Blue Water Logistics IPO presents a good opportunity for investors, especially those looking for listing gains. While the investment is not entirely risk-free, given the current GMP of ₹12 and the company’s consistent performance, it seems a worthwhile bet for risk-tolerant investors.

The logistics sector in India is undergoing a massive transformation, with rising demand due to infrastructure development, government schemes, and the growth of e-commerce. Companies like Blue Water Logistics that are well-capitalised and technologically equipped are likely to benefit from this macroeconomic trend.

In conclusion, investors seeking short-term listing benefits and long-term exposure to the logistics sector may consider subscribing to the Blue Water Logistics IPO. However, as always, it is advisable to consult with a financial advisor before making any investment decision.

The Upcoming IPOs in this week and coming weeks are 3B Films, Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are N R Vandana Tex Industries, Scoda Tubes, Neptune Petrochemicals, Blue Water Logistics, Astonea Labs, Nikita Papers, Prostarm Info Systems, Aegis Vopak Terminals, Schloss Bangalore.

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