GB Logistics Commerce debut at 20% discount, hit 5% lower circuit after listing

Logistics services provider GB Logistics Commerce Ltd made a weak debut on Friday, January 31, on the BSE SME platform with its shares listing at a discount of 20%.

Shares of the company were listed at ₹81.6 apiece on the BSE against the issue price of ₹102 per unit, reflecting a discount of 20% over the issue price.

Soon after listing, the stock dropped as much as 5% to hit the lower circuit limit at ₹77.55 apiece.

More than 4.87 lakh equity shares changed hands on the bourse within five minutes of trade. The total turnover stood at ₹3.94 crore. The company’s market capitalisation stood at ₹63.63 crore.

At the listing price of ₹81.6 per share, the value of a single lot of shares bagged by investors in the IPO share allotment stood at ₹97,920 (₹81.6 x 1,200). The IPO investors faced a listing loss of ₹24,480 per lot as the minimum investment for a single lot size per application was ₹1,22,400 (₹102 x 1,200).

GB Logistics Commerce IPO details

GB Logistics Commerce Ltd raised ₹25.07 crore through its initial public offering (IPO), which was open for subscription from January 24 to January 28. The IPO comprised a fresh issuance of 24.58 lakh equity shares. The price band for the public offer was fixed at ₹95 to ₹102 per share, and the lot size was 1,200 shares.

At the close of bidding, the SME IPO of the logistics services provider attracted a bumper subscription of 185 times on strong demand from all investors. The public coffer garnered applications for 30.28 crore equity shares against 16.34 lakh shares on offer.

The retail individual investors’ quota was subscribed 122.07 times as applications for 9.97 crore shares were received against 8.17 lakh shares on offer. The non-Institutional Investors (NIIs) portion was booked 402.08 times with bids for 19.06 crore shares pouring in against 3.5 lakh shares on offer. The Qualified Institutional Buyers (QIBs) quota was subscribed nearly 27 times. The QIBs placed bids for over 1.25 crore shares compared to 4.66 lakh shares set aside for them.

GB Logistics is a logistics services provider for medium and large enterprises. It has a fleet of closed-body, light and heavy trailer trucks and vehicles. The company is also involved in the trading of agricultural commodities.

The company has proposed to utilise the IPO funds for repayment, in parts or full, of certain outstanding loan facilities.

GB Logistics Commerce will also use the funds to buy truck bodies and chassis and fund working capital requirements. According to the RHP, a sum of ₹5 crore would be used for debt prepayment, ₹9.38 crore for working capital requirements, ₹3.8 crore for purchasing truck chassis and bodies and the rest for general corporate purposes.

GB Logistics Commerce reported revenue of ₹50.85 crore for the April-September period of FY25. Its net profit stood at ₹2.52 crore during the period.

For FY 2023-24, the company reported a revenue of ₹115.63 crore and a net profit of ₹4.86 crore.