Iware Supplychain Services Limited is set to launch its Initial Public Offering (IPO) on April 28, 2025, with a fresh issue of 28.56 lakh shares amounting to ₹ 27.13 crores. The IPO is offered at a fixed price of ₹ 95 per equity share. Iware Supplychain Services is a pan-India integrated logistics company with a diversified portfolio, offering services like warehousing, third-party logistics (3PL), carrying & forwarding agent operations, transportation, rake handling, and business auxiliary services. Their expansive network covers critical regions such as Gujarat, West Bengal, Uttar Pradesh, Rajasthan, Punjab, Haryana, and Delhi.

Key Subscription Information:

The subscription for the Iware Supplychain Services IPO will be open from April 28, 2025, and will close on April 30, 2025. Investors can apply for a minimum of 1,200 shares at a cost of ₹ 1,14,000, while High-Net-Worth Individuals (HNIs) will need to invest for at least 2 lots, totaling ₹ 2,28,000. The IPO is expected to be listed on the NSE SME with a tentative listing date of May 06, 2025.

Grey Market Premium (GMP) and Listing Expectations:

The Grey Market Premium (GMP) for the IPO is expected to be ₹ 18, which suggests a potential listing gain of 18.94%. However, Grey Market Premium is an informal indicator and doesn't guarantee actual performance once the shares are officially listed on the stock exchange. The IPO's market capitalization at the offer price of ₹ 95 per share stands at ₹ 101.80 crores.

Financial Performance and Growth:

For the financial years ending March 31, 2025, 2024, and 2023, Iware Supplychain Services posted steady growth in revenue. The revenue from operations for FY2023 was ₹ 8,610.9 Lakh, followed by ₹ 5,876.86 Lakh in FY2024, and an estimated ₹ 4,372.00 Lakh for FY2025. The EBITDA figures also show consistent growth, with ₹ 638.88 Lakh for FY2025, compared to ₹ 1,093.22 Lakh in FY2024 and ₹ 1,729.20 Lakh in FY2023. Despite fluctuations in revenue, the company’s profit after tax (PAT) figures indicate consistent profitability, with ₹ 42.29 Lakh for FY2025 and ₹ 416.96 Lakh in FY2024.

Objectives of the IPO:

The funds raised from this IPO are planned to be utilized in the following ways:

• ₹ 1,406.43 Lakh for capital expenditure, particularly for the construction of a new industrial shed.

• ₹ 680.00 Lakh to fulfill the company’s working capital requirements.

• ₹ 386.77 Lakh for general corporate purposes.

Financial Metrics and Valuation:

The Pre-Issue EPS for the company stands at ₹ 5.3, while the Post-Issue EPS is estimated at ₹ 3.89 for FY24. With a pre-issue P/E ratio of 17.92x and a post-issue P/E ratio of 24.42x, the IPO is priced at a slight premium compared to the industry P/E ratio of 15x. Other financial metrics such as ROCE (30.34%) and ROE (58.52%) indicate a healthy return on capital employed and equity, which further solidify the company's financial position.

Risk Analysis and Investment Recommendation:

Given the strong financial performance and steady growth trajectory, the Iware Supplychain Services IPO is priced reasonably. The company’s return on net worth (RoNW) of 49.54% and Annualized EPS of ₹ 10.2 suggests that the IPO might offer potential for listing gains. However, investors should consider the inherent risks associated with the logistics sector, such as fluctuating demand for services and operational challenges in a highly competitive market.

Subscription Allotment and Finalization Process:

The allotment for the IPO is scheduled to be finalized by May 02, 2025, with the allotment status available on the registrar's website from that date. To check the allotment status, investors must enter their application number, PAN, or DP Client ID on the registrar's website. Investors will be informed about the allocation of shares, and the shares will be credited to the demat accounts of successful bidders.

Conclusion:

The Iware Supplychain Services IPO presents a compelling investment opportunity for risk-tolerant investors looking for listing gains, thanks to its solid financial performance, competitive edge in the logistics sector, and positive market indicators such as a promising GMP. However, potential investors should assess their risk appetite and investment goals before making a decision.

This article has covered the crucial aspects of the IPO, including subscription dates, price details, GMP trends, and company performance metrics, to assist you in making an informed investment decision.

The Upcoming IPOs in this week and coming weeks are Arunaya Organics,Kenrik Industries,Wagons Learning,Srigee DLM.

The Current active IPO are Ather Energy, Iware Supplychain Services.

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