GB Logistics Commerce Limited has recently launched its Book Built IPO to raise funds amounting to ₹25.07 Crores, consisting entirely of a fresh issue of 24.57 lakh equity shares. The IPO opened on January 24, 2025, and closed on January 28, 2025. The allotment process for this IPO was finalized on January 29, 2025, and shares will be listed on the BSE SME with a tentative listing date of January 31, 2025.

The price band for the GB Logistics Commerce IPO has been set between ₹95 to ₹102 per equity share. At the upper end of the price band, the market capitalisation of GB Logistics Commerce at the IPO price of ₹102 will be ₹83.58 Crores. The IPO has generated considerable investor interest, with a lot size of 1,200 shares. Retail investors are required to invest a minimum of ₹1,22,400, while High-Net-Worth Individuals (HNIs) must invest a minimum of ₹2,44,800, which equates to two lots or 2,400 shares.

Subscription and GMP Overview:
As of January 28, 2025, the IPO subscription has been a resounding success, with the issue being subscribed 172.29 times. This high level of interest reflects strong demand for the company's shares. The Grey Market Premium (GMP) for this IPO is reported at ₹0, indicating no immediate expected gains, which suggests that the market will determine the true value only after listing.

The IPO has raised substantial funds from anchor investors, with ₹7.13 Crores allocated at the price of ₹102 per share. These investors collectively acquired 6,99,600 equity shares, underlining the confidence in the company's future performance.

Key Objectives of the IPO:
The funds raised from this IPO will be utilised for the following key objectives:

1. Prepayment or repayment of outstanding borrowings, amounting to ₹500 Lakhs.
2. Working capital requirements estimated at ₹937.77 Lakhs.
3. Purchase of truck chassis and truck bodies, for which ₹380 Lakhs is allocated.
4. The remaining funds will be used for general corporate purposes.

GB Logistics Commerce Limited Overview:
GB Logistics Commerce operates in two main sectors: logistics and trading of agricultural commodities. The company offers full truckload freight services to large and medium-sized enterprises, utilising both proprietary and third-party transportation services. Their services include regular full-truckload transportation, special handling, go-down-to-go-down transportation, delivery above ground floor, and the handling of out-of-delivery area shipments.

The company's Managing Director, Prashant Natwarlal Lakhani, brings over 30 years of experience in the courier and cargo industry. Under his leadership, GB Logistics Commerce has grown to become a significant player in both the logistics and agricultural commodities trading sectors.

Financial Performance and Valuation:
For the fiscal year 2024, GB Logistics Commerce reported revenue of ₹11,563.31 Lakhs, with an EBITDA of ₹847.61 Lakhs and a Profit after Tax (PAT) of ₹486.24 Lakhs. The company's pre-issue EPS stands at ₹9.67, and the post-issue EPS is estimated to be ₹5.93. The P/E ratio at the upper price band of ₹102 is 17.19x, which is relatively low compared to the industry average of 79x.

This suggests that the IPO is fairly priced, offering an attractive investment opportunity for those looking to invest in a company with steady growth prospects.

Recommendation:
Despite the IPO's solid fundamentals, the Grey Market Premium (GMP) of ₹0 indicates that there may not be immediate listing gains. As such, investors looking for quick listing gains may want to avoid this IPO. However, for those with a long-term investment horizon, GB Logistics Commerce offers a stable growth story driven by its strong operational history and experienced leadership.