Blue Water Logistics Limited, a specialized logistics service provider offering end-to-end freight forwarding, SCM, warehousing, and transport solutions, concluded its Initial Public Offering (IPO) on May 29, 2025, with a strong response from investors. The company operates across SEA, air, and land-based logistics, addressing various verticals including project logistics, distribution, warehouse management, and supply chain management (SCM).

The IPO was a Book Built Issue worth ₹40.5 Crores, consisting entirely of a fresh issue of 30 lakh equity shares. The price band was set between ₹132 and ₹135 per share. At the upper price band of ₹135, the company's market capitalization will be approximately ₹148.5 Crores post-listing.

The lot size for retail investors was 1,000 shares, requiring a minimum investment of ₹1,35,000, while High-Net-Worth Individuals (HNIs) had to apply for at least two lots (₹2,70,000).

The subscription window was open from May 27 to May 29, 2025, with the basis of allotment expected to be finalized on May 30, 2025. The shares are tentatively scheduled for listing on the NSE SME platform on June 3, 2025.

IPO Subscription Status and Anchor Investment:

By the end of the final day (May 29, 2025), the Blue Water Logistics IPO received an overall subscription of 8.76 times, showcasing significant investor interest.

In a pre-IPO placement round, the company successfully raised ₹11.27 Crores from anchor investors, who subscribed at the upper end of the price band at ₹135 per share, leading to the allocation of 8.35 lakh shares.

Grey Market Premium (GMP) Trends:

As of May 19, 2025, the Grey Market Premium (GMP) for Blue Water Logistics stood at ₹12 per share, translating to an expected listing price of ₹147. This represents a potential listing gain of 8.88% for investors. However, it is important to note that GMP is unofficial, speculative, and should not be the sole basis for investment decisions.

Financial Performance and Valuation Analysis:

Blue Water Logistics has demonstrated consistent and robust growth in revenue and profitability over recent financial years.

Revenue Growth:

• FY22: ₹8,472.21 Lakh

• FY23: ₹9,806.96 Lakh

• FY24: ₹13,874.33 Lakh

• FY25 (as of March 31): ₹19,628.59 Lakh

EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization):

• FY22: ₹240.10 Lakh

• FY23: ₹391.66 Lakh

• FY24: ₹1,056.92 Lakh

• FY25: ₹1,885.12 Lakh

Profit After Tax (PAT):

• FY22: ₹104.31 Lakh

• FY23: ₹154.06 Lakh

• FY24: ₹594.05 Lakh

• FY25: ₹1,067.08 Lakh

Key Ratios:

• Pre-Issue EPS: ₹13.34

• Post-Issue EPS: ₹9.70

• Pre-Issue P/E Ratio: 10.12x

• Post-Issue P/E Ratio: 13.92x

• Industry P/E: ~113x

• ROCE (FY24): 30.00%

• ROE (FY24): 72.02%

• RoNW (FY24): 52.95%

These figures indicate that Blue Water Logistics Limited has a strong track record of profitability and growth, positioning it competitively within the logistics industry.

IPO Objectives:

The company aims to utilize the net proceeds from the IPO for the following objectives:

1. ₹10.52 Crores: Capital expenditure for the purchase of vehicles and body-building enhancements.

2. ₹20.00 Crores: To meet the working capital requirements of the business.

3. Balance funds: For general corporate purposes.

These investments are expected to boost the company's asset base, support operational expansion, and enhance service capabilities across India and international logistics corridors.

Promoters and Leadership:

• Mr. Laxmi Narayan Mishra, Chairman and Whole-Time Director, brings over 13 years of experience in logistics.

• Mr. Lalit Panda, Managing Director, holds 7 years of industry expertise.

Their combined industry experience equips the company with strategic insight, customer relationship strength, and efficient management capabilities, critical for sustained growth.

IPO Allotment – How to Check:

The IPO allotment results will be available from May 30, 2025, on the website of the registrar, Maashitla Securities Pvt Ltd.

Steps to check allotment status:

1. Go to the registrar's allotment status page.

2. Select "Blue Water Logistics Limited IPO" from the dropdown.

3. Enter your Application Number, PAN, or DP Client ID.

4. Click on Submit to view your allotment status.

Market Maker and Lead Manager:

• Smart Horizon Capital Advisors Pvt Ltd is the Book Running Lead Manager.

• Maashitla Securities Pvt Ltd is the Registrar to the issue.

• Shreni Shares Ltd will act as the Market Maker.

Final Thoughts – Should You Invest?

Given its strong financial trajectory, reasonable valuations compared to industry peers, and healthy subscription levels, the Blue Water Logistics IPO appears attractive, especially for risk-tolerant investors seeking listing gains.

The P/E ratios (both pre and post-issue) are significantly lower than the industry average, which might offer valuation comfort. However, as an SME IPO, liquidity and volatility risks remain, and investors are advised to evaluate their risk appetite accordingly.

Recommendation: Risk-appetite investors can consider applying for listing gains, while long-term investors should monitor post-listing performance and operational scalability

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