GB Logistics IPO : GMP, Price, Date & Details

GB Logistics IPO-Complete Overview

GB Logistics IPO under the SME IPO category is a book-built issue of Rs.25.07 Cr (24.58 lac Shares) by GB Logistics Commerce Limited established in 2019. Hiring qualified drivers, together with the fleet of vehicles he owns and rents, and a network of carriers on contract, allow for flexibility, fast response, and high-volume transportation. 

The company can thus avail itself of its own or out-of-house transport resources to optimize logistics management for full truckload freight services catering to large and medium-sized business firms.

Business Segments:

Logistics: Full truckload, special handling, godown to godown connected, upstairs level delivery, and best of breed knowledge of delivery area (ODA) shipments in difficult remote places. 

Trade in Agricultural Commodities: The trade of agricultural commodities has gotten very close to that of trading agricultural commodities. It ensures excellent future opportunities for additional revenue through occasional trading and income diversifications with a net gain in the values of both the agricultural and logistics sectors.

GB Logistics Limited IPO Overview

This GB Logistics IPO date is 24 January, and its ‘initial public offering’ will end on 28 January 2025.    

This Rs.25.07 crore new SME IPO comprises a wholly fresh issue of 24.58 lac Shares. 

This upcoming IPO date is on 24 Jan 2025. The GB Logistics IPO Price is Rs.95 to Rs.102 for each Share. 

The expected IPO listing date is 31 Jan 2025, and the listing at BSE and SME.

Click to open a Demat account and apply for the IPO.

Company Financial

(Amount in Cr)

 

Cash Flows

The cash flows for various activities are shown below:

(Amount in lac)

 

Product-wise Revenue Breakdown 

(Amount in lac)

(Source: RHP)

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The Objective of The Issue

• Repayment in full or in part of some outstanding loans that the company has obtained.

• Requirements for working capital.

• Investment in the acquisition of truck bodies and chassis.

• General corporate purposes.

 

Peers of GB Logistics Ltd.

 

Note:-

The basic EPS of the peers is for the financial year ended on 31 Mar 2024.

Evaluation

The GB Logistics Commerce Limited IPO share price is Rs.95 to Rs.102 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.8.48 from the last year, the resulting P/E ratio is 12.02x.

Considering the weighted EPS of Rs.4.96 for the last three years, the P/E ratio is 20.56x.

IPO's Strengths

• Fleet and infrastructure are relatively strong.

• Competence and practice.

• Standing partnership.

 

IPO’s Weaknesses

• Third-party vehicle dependency: The business is so heavily dependent on third-party vehicles for transportation services. Customer frustration or lost customers because of the third-party staff's non-availability, delay, and misconduct will be encountered in case of fact and loss of business.

• Fluctuations in interest rates could affect the cost of borrowing for the business and hence its operations and profitability.

• Corrections in Government Regulations Policy: Amendments on Government policies and how those are enforced may modify business results by disrupting operations or raising costs.

• Natural Calamities and Pandemics Risks: For example, epidemics, pandemics, and natural calamities such as floods or earthquakes can have a big impact on operations and therefore affect financial stability itself.

GB Logistics IPO GMP Today

GB Logistics IPO GMP is Rs.0 as of 21 January 2025.

IPO Timetable (Tentative)

The IPO opening date is January 24, with allotment on January 29, refund initiation on January 30, and listing on  31 January 2025.

GB Logistics Commerce IPO Details 

The GB IPO with a Face Value of Rs.10 per share offers a total issue size of 24,57,600 Shares (Rs.25.07 Cr).

GB Logistics IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1200 Shares) amounting to Rs.1,22,400 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2400 Shares) amounting to Rs.2,44,800.

 

IPO Reservation (% of Net Issue)

Promoters And Management of GB Logistics Commerce Ltd.

• Prashant Natwarlal Lakhani.
  
  

IPO Lead Managers

SKI Capital Services Limited.

Dividend Policy

The company has not declared a dividend in any FY.

Conclusion

The GB Logistics IPO offers a promising opportunity for investors with its strong logistics infrastructure and diversified business in agricultural commodities. However, risks like dependency on third-party vehicles and market uncertainties should be considered. The IPO is attractively priced with a P/E ratio lower than peers, making it a competitive option. Investors should evaluate based on their risk appetite and market outlook.