GB Logistics Commerce Limited operates in two primary verticals: logistics services and agricultural commodities trading. The company provides comprehensive logistics solutions, including full-truckload freight services for medium and large enterprises. Its specialized offerings include regular full-truckload transportation, go-down-to-go-down services, delivery to locations above the ground floor, and handling shipments in out-of-delivery areas.

Under the leadership of Prashant Natwarlal Lakhani, the Managing Director with over three decades of experience in logistics and cargo, the company has grown its operational reach. Lakhani’s journey started in 1991 with courier services, leading to the establishment of several successful ventures before steering GB Logistics Commerce Limited.

IPO Details

GB Logistics Commerce Limited is launching a Book Built Issue IPO offering fresh equity shares.

• Issue Size: ₹25.07 Crores (24.57 Lakh Shares)
• Price Band: ₹95 to ₹102 per share
• Market Capitalization: ₹83.58 Crores (at the upper price band)
• Lot Size: 1,200 shares (minimum investment ₹1,22,400 for retail investors)
• IPO Dates: January 24, 2025 – January 28, 2025
• Listing Exchange: BSE SME
• Tentative Listing Date: January 31, 2025

The issue's lead manager is SKI Capital Services Limited, with Maashitla Securities Private Limited acting as the registrar. SVCM Securities Private Limited serves as the market maker.

Financial Performance

The company has demonstrated steady financial growth, with the following highlights:

• Revenue from Operations:

  • ₹5,085.30 Lakh (H1 FY24)
  • ₹11,563.31 Lakh (FY24)

• EBITDA:

  • ₹444.03 Lakh (H1 FY24)
  • ₹847.61 Lakh (FY24)

• Profit After Tax (PAT):

  • ₹252.80 Lakh (H1 FY24)
  • ₹486.24 Lakh (FY24)

Key Valuation Metrics

GB Logistics Commerce has competitive valuation metrics compared to the industry average:

• Pre-Issue EPS (FY24): ₹9.67
• Post-Issue EPS (FY24): ₹5.93
• Pre-Issue P/E Ratio: 10.55x
• Post-Issue P/E Ratio: 17.19x
• Industry P/E Ratio: 79x
• ROCE (FY24): 14.51%
• ROE (FY24): 27.36%

The Annualized EPS is ₹8.82 with a P/E ratio of 11.56x, suggesting that the IPO is fairly priced.

Grey Market Premium (GMP)

As of January 19, 2025, the Grey Market Premium for GB Logistics Commerce IPO is ₹0. This indicates no anticipated listing gains, reflecting limited speculative demand. While GMP can provide some market sentiment, it is not a definitive indicator of performance post-listing.

Day-Wise GMP Trend:

• January 19, 2025: GMP ₹0 (0.00%), Expected Listing Price ₹102

Anchor Investors

GB Logistics Commerce raised ₹7.13 Crores from anchor investors at ₹102 per share, allocating 6,99,600 equity shares.

Investment Recommendation

Despite steady financial growth and a reasonable valuation, the IPO lacks speculative interest as reflected by a zero GMP. While the company's fundamentals are strong, the logistics and agricultural trading sectors face challenges, and the low market sentiment suggests limited short-term gains.

Final Verdict

Risk-averse investors may avoid this IPO for listing gains. However, long-term investors with a focus on logistics and agricultural sectors may consider investing based on the company's financial stability and growth potential. Evaluate your risk tolerance before making a decision.

The Upcoming IPOs in this week and coming weeks are Malpani Pipes And Fittings and Dr. Agarwal's Health Care.

The Current active IPO are H.M. Electro Mech, GB Logistics and CLN Energy.

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