GB Logistics Commerce Limited, specializing in logistics and agricultural commodity trading, is preparing for an IPO through a fresh issue of 24.57 Lakh shares. The company offers a wide range of logistics services, including full truckload freight, special handling, and out-of-delivery area shipments. With a price band set between ₹95 and ₹102 per equity share, the IPO aims to raise ₹25.07 Crores. At the upper price band, the company's market capitalization is ₹83.58 Crores. Retail investors must invest a minimum of ₹1,22,400, while HNIs need to invest a minimum of ₹2,44,800 for 2 lots.

The subscription period for the GB Logistics Commerce IPO opens on January 24, 2025, and closes on January 28, 2025, with the allotment expected to be finalized by January 29, 2025. The shares will be listed on the BSE SME on or about January 31, 2025.

Subscription and GMP Trends
The Grey Market Premium (GMP) for GB Logistics Commerce IPO is ₹0, indicating that there are no expected listing gains based on current market sentiment. While the GMP is a speculative metric, it suggests that investor interest may be lukewarm for this IPO.

Anchor Investors
GB Logistics Commerce has raised ₹7.13 Crores from anchor investors at ₹102 per share, with a total of 6,99,600 shares allocated. This demonstrates that institutional investors have shown confidence in the company's future.

Financial Performance and Valuation
The company’s revenue for the period ending September 30, 2024, was ₹5,085.30 Lakh, with a Profit After Tax (PAT) of ₹252.80 Lakh. For the fiscal year 2024, the company posted revenues of ₹11,563.31 Lakh and PAT of ₹486.24 Lakh. These figures indicate steady growth, but the company’s financials are relatively modest compared to the valuation being offered in the IPO.

Key financial metrics for the company include a pre-issue EPS of ₹9.67 and a post-issue EPS of ₹5.93 for FY24. The pre-issue P/E ratio stands at 10.55x, while the post-issue P/E ratio is 17.19x, which is lower than the industry P/E of 79x. This suggests that the IPO is fairly priced, although it might not offer significant upside potential in terms of immediate listing gains.

Investment Recommendation
Given the 0% Grey Market Premium and the financials of the company, we recommend avoiding the GB Logistics Commerce IPO if the goal is to make listing gains. While the company shows steady growth, it may not offer significant short-term returns. Investors looking for more growth potential may consider other opportunities.

IPO Allotment Process
The allotment date for the GB Logistics Commerce IPO is January 29, 2025. Investors can check their allotment status by visiting the registrar's website and providing their application number, PAN, or DP Client ID.

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