GB Logistics Commerce operates in two key business segments: logistics and agricultural commodities trading. The company offers full truckload freight services tailored to large and medium-sized enterprises. They use a combination of proprietary and third-party transportation services to manage their logistics operations. Their range of services includes special handling, go-down-to-go-down transportation, delivery above ground floor, and handling shipments to out-of-delivery areas.

IPO Details
GB Logistics Commerce is set to launch its IPO worth ₹ 25.07 Crores, consisting of 24.57 lakh fresh shares. The price band for the IPO is between ₹ 95 and ₹ 102 per share, with a lot size of 1,200 shares. Retail investors need to invest a minimum of ₹ 1,22,400, while High Net-Worth Individuals (HNIs) must invest at least ₹ 2,44,800 for two lots. The subscription period is from January 24, 2025, to January 28, 2025, with the allotment date scheduled for January 29, 2025. The tentative listing date on BSE SME is set for January 31, 2025.

Grey Market Premium (GMP)
The Grey Market Premium (GMP) for the GB Logistics Commerce IPO is currently at ₹ 0, indicating no anticipated listing gains. This lack of premium suggests that the IPO might not see a significant rise in value once it lists on the stock exchange. Investors should approach this IPO with caution, considering the limited potential for short-term gains.

IPO Subscription Status
As of 5:00 PM on January 24, 2025, the GB Logistics Commerce IPO has been subscribed 5.44 times on the first day, which reflects a good demand for the shares. However, the GMP and financial performance metrics indicate a more cautious outlook for investors seeking listing gains.

Financial Performance and Metrics
GB Logistics Commerce has demonstrated consistent growth, with revenues for the year ending September 30, 2024 reaching ₹ 5,085.30 lakh. The company’s EBITDA and Profit after Tax (PAT) have also shown steady increases, reinforcing the soundness of its business model.

• Pre-issue EPS for FY24 stands at ₹ 9.67, with a post-issue EPS of ₹ 5.93.
• The P/E ratio pre-issue is 10.55x, while the post-issue P/E ratio stands at 17.19x, compared to the industry average of 79x.
• ROCE for FY24 is 14.51%, and the ROE is 27.36%, indicating efficient use of capital.

Utilization of IPO Proceeds
The funds raised from the IPO will be used for the following purposes:

1. ₹ 500 Lakhs for the prepayment/repayment of outstanding borrowings.
2. ₹ 937.77 Lakhs for working capital requirements.
3. ₹ 380 Lakhs for purchasing truck chassis and truck bodies to improve the company's logistical capabilities.
4. The remaining funds will be allocated for general corporate purposes.

Why Invest in the GB Logistics Commerce IPO?
Although the company has solid financial performance and operates in the growing logistics sector, the lack of a Grey Market Premium suggests limited potential for short-term listing gains. The fair pricing of the IPO and consistent revenue generation do make it an attractive long-term option for those looking for stability in the logistics space. However, investors seeking quick gains might find better opportunities elsewhere.

GB Logistics Commerce IPO Allotment Date and Status
The allotment date for the GB Logistics Commerce IPO is January 29, 2025, and the status can be checked on the Registrar’s website using either the application number, PAN, or DP Client ID.

Conclusion

The GB Logistics Commerce IPO offers an opportunity to invest in a company with stable operations in the logistics and agricultural commodities sectors. However, with no Grey Market Premium and limited listing gain potential, investors looking for short-term returns may want to proceed cautiously. For those with a long-term investment horizon, the IPO presents a reasonable option, but caution is advised.

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