GB Logistics Commerce IPO: Detailed Analysis for Investors

GB Logistics Commerce Limited operates in two primary business areas: logistics services and agricultural commodities trading. The company provides full truckload freight services for large and medium enterprises, specializing in various transportation needs, including special handling and deliveries beyond typical areas.

IPO Details

• Price Band: ₹ 95 to ₹ 102 per share
• Market Capitalization at Upper Price Band: ₹ 83.58 Crores
• Lot Size: 1,200 shares
• Retail Minimum Investment: ₹ 1,22,400 (for 1,200 shares)
• HNI Minimum Investment: ₹ 2,44,800 (for 2,400 shares)

Company Performance and Market Insights

• Grey Market Premium (GMP) shows 0.00% potential listing gain, indicating low market interest.
• GB Logistics is focused on transportation services for a variety of industries, making it a potential player in the growing logistics sector.

IPO Objectives

The net proceeds from the IPO will be used for:

1. Prepayment/repayment of borrowings (₹ 500 Lakhs)
2. Working capital requirements (₹ 937.77 Lakhs)
3. Purchase of truck chassis and bodies (₹ 380 Lakhs)
4. General corporate purposes

Financial Performance

• Revenue (FY 2024): ₹ 11,563.31 Lakhs
• Profit After Tax (FY 2024): ₹ 486.24 Lakhs
• Pre-issue P/E Ratio: 10.55x
• Post-issue P/E Ratio: 17.19x
• ROCE (FY 2024): 14.51%
• EPS (FY 24): Pre-issue: ₹ 9.67, Post-issue: ₹ 5.93

GB Logistics Commerce IPO Review

While the IPO valuation and financial metrics suggest the issue is fairly priced, the lack of Grey Market Premium (GMP) and lower subscription interest signal limited listing gains. The company’s stable performance in the logistics and transportation sector may appeal to long-term investors, but short-term listing gains seem unlikely.

Anchor Investors and Subscription Status

GB Logistics has secured ₹ 7.13 Crores from Anchor Investors at ₹ 102 per share. As of January 28, 2025, the IPO was subscribed 172.29 times, indicating strong institutional interest but potentially weaker demand from retail investors.

IPO Allotment Check:

• Allotment status will be available from January 29, 2025 on the Registrar's website. Investors can check their status by entering their details on the allotment page.

Considering the GMP, the IPO’s financial performance, and the limited potential for listing gains, we suggest avoiding the GB Logistics Commerce IPO for quick returns, especially for those seeking immediate profits.