GB Logistics Commerce Limited is set to launch its initial public offering (IPO) from January 24 to January 28, 2025, aiming to raise approximately ₹25.07 crores. The company specializes in logistics and transportation services, providing efficient solutions for both full truckload freight and agricultural commodities trading. Established in 2019, GB Logistics has built a reputation for reliability and flexibility, leveraging its own fleet and partnerships to enhance service delivery. The funds raised from the IPO will be allocated towards debt repayment, working capital needs, and purchasing new truck chassis. With a growing demand for logistics services in India.
₹20
₹102
₹81.60
Expert Opinions
Market sentiment for the GB Logistics IPO is optimistic, driven by the robust growth trajectory of the logistics sector in India, which is projected to reach a value of $380 billion by 2025. The company has established a strong operational foundation, specializing in full truckload freight services and agricultural commodities trading, which diversifies its revenue streams and enhances market resilience.
However, potential risks include dependence on third-party services and compliance with evolving regulations, which could impact service quality and operational efficiency. The IPO is expected to have a return on net worth (RoNW) of approximately 27.36%, indicating a competitive valuation against industry peers. From a long-term investment perspective, GB Logistics is well-positioned to capitalize on the increasing demand for logistics solutions.
Investor Considerations
Investors considering the GB Logistics IPO should carefully evaluate several key factors. Company performance and fundamentals reveal a steady revenue stream, with reported revenues of ₹115.63 crores and a profit of ₹4.86 crores in 2024, indicating operational efficiency. The sector outlook is promising, as the Indian logistics market is expected to grow significantly, driven by increased demand for efficient supply chain solutions.
The IPO valuation shows an earnings per share (EPS) of ₹8.48, a return on equity (ROE) of 27.36%, and a return on capital employed (ROCE) of 14.51%, suggesting a competitive investment opportunity. Growth prospects remain strong, with plans to expand service offerings and fleet capabilities to meet rising demand. However, potential risk factors include regulatory challenges and fluctuations in fuel prices impacting operational costs. A long-term investment horizon is advisable, as GB Logistics aims to capitalize on favorable trends in the logistics sector for sustained growth.
| Date | GMP | Trend |
|---|---|---|
| 30 Jan 2025 17.59 | ₹20 | Down |
| 29 Jan 2025 10.29 | ₹30 | --- |
| 28 Jan 2025 18.31 | ₹30 | Up |
| 27 Jan 2025 10.38 | ₹20 | --- |
| 25 Jan 2025 11.36 | ₹20 | --- |
| 24 Jan 2025 12.28 | ₹20 | Up |
| 23 Jan 2025 11.27 | ₹00 | --- |
| 22 Jan 2025 11.04 | ₹00 | --- |
| 21 Jan 2025 11.01 | ₹00 | --- |
| 20 Jan 2025 12.42 | ₹00 | --- |
FAQs
The Grey Market Premium showed poor accuracy in predicting GB Logistics’ listing performance. While the GMP of ₹20 predicted a positive premium of 19.61% over the issue price, the stock actually listed at a significant discount of 20%. With a substantial prediction error of 33.11%, the GMP not only failed to predict the magnitude but also completely misread the direction of the listing movement, demonstrating its unreliability as a price predictor in this case.
GB Logistics IPO Current GMP is ₹20.
GB Logistics IPO Expected Returns is 19.61%.
GB Logistics IPO estimated listing price is ₹122.