GB Logistics Commerce IPO Day 1: BSE SME issue booked 5 times so far; check offer size, price band and other key details

The initial public offering of logistics service provider GB Logistics Commerce Ltd opened to a strong demand across investors categories on Friday, January 24. The BSE SME issue was booked 5 times, driven by the retail investors.

The ₹25.07-crore public offer is open for subscription from January 24 to January 28. Opening on a high note, the issue was fully subscribed within hours of launch.

According to the BSE data till 3:40 pm, applications for over 83.3 lakh shares were received against 16.34 lakh shares on offer.

The Qualified Institutional Buyers (QIBs) placed applications for more than 32.68 lakh shares against the allocation of 4.66 lakh shares. The QIBs’ category was booked 7 times. The retail portion was booked 4.94 times with bids for more than 40.4 lakh shares compared to 8.17 lakh shares on offer. The Non-Institutional Investors (NIIs) submitted applications for over 10.21 lakh shares compared to 3.5 lakh shares reserved for them, leading to a subscription of 2.91 times in the category.

GB Logistics in the pre-bid round on January 23 raised ₹7.12 crore from anchor investors. The company allotted 6,99,600 shares at a price of ₹102 per share.

Here’s a look at the key details about the IPO for the investors interested in participating in the subscription of the SME issue.

GB Logistics Commerce IPO details

GB Logistics Commerce IPO is a fresh issue of 24.58 lakh equity shares. The company has set the price band at ₹95 to ₹102 per share, while the lot size for an application is 1,200 shares.

The subscription for GB Logistics IPO will remain open till January 28. The company will finalise the share allotment status on January 29. GB Logistics has proposed to list its shares on the BSE SME platform on January 31.

SKI Capital Services Limited is the book running lead manager while Maashitla Securities Private Limited is the registrar of the GB Logistics IPO.

GB Logistics Commerce IPO Objects

GB Logistics Commerce Limited operates in two main business verticals: logistics and trading of agricultural commodities.

It provides full truckload freight services for large and medium-sized enterprises. With a fleet comprising light, heavy, closed body, and trailer trucks, GB Logistics ensures extensive domestic coverage.

The company also capitalises on its logistics business to operate in the agricultural trading segment. It engages in logistics operations with a strategic proximity to agriculture commodities. In instances where trading opportunities arise incidentally to the logistics activities, it capitalises on them to generate additional revenue and profit.

The company has proposed to utilise IPO proceeds of ₹5 crore for prepayment or repayment of certain outstanding borrowings.

It has planned to utilise ₹9.38 crore to meet working capital requirements and ₹3.8 crore to fund expenditure towards purchase of truck chassis and truck bodies. The rest of the funds will be for general corporate purposes.

The company reported a net profit of ₹2.52 crore for the six month period to September 2024. Total income was ₹50.85 during the period.

Its net profit was ₹4.86 crore and the total income stood at ₹115.63 crore for the year ended on March 31, 2024.