GB Logistics Commerce IPO Sees Strong Demand: 7.76x Subscription on Day 2
The SME Initial Public Offering (IPO) of GB Logistics Commerce has demonstrated remarkable investor interest, achieving an impressive 7.76 times subscription by 11:38 AM on its second day of bidding. This logistics and agricultural commodity trading specialist is aiming to secure Rs 25.07 crore through its public offering, with plans to list on the BSE SME platform by January 31, 2025.
Subscription Status Across Categories
The IPO has witnessed strong demand across all investor categories:
- Retail investors showed exceptional interest with a 10.49 times subscription rate, demonstrating strong confidence in the company's potential.
- Qualified institutional buyers (QIBs) maintained solid participation with a 7.00 times subscription of their allocated portion.
- Non-institutional investors contributed with a 3.82 times subscription rate.
IPO Details and Grey Market Performance
The company's shares are showing strong momentum in the grey market, commanding a premium of Rs 23, representing a 22% increase over the upper price band. The IPO is structured with a price band of Rs 95-102 per share, making it accessible to various investor categories.
Investment Parameters
For retail investors, the minimum investment requirement is set at 1,200 shares, amounting to Rs 1,22,400. High Net-Worth Individuals (HNIs) must invest in a minimum of 2,400 shares, with a total investment of Rs 2,44,800.
Company Overview and Business Model
Established in 2019, GB Logistics Commerce Limited has evolved into a comprehensive logistics solutions provider. The company operates through two primary segments:
- A logistics division offering full truckload transport, specialized handling, and strategic delivery solutions for challenging locations.
- An agricultural commodities trading segment focusing on sector-specific logistics solutions.
Financial Performance
The company has demonstrated strong financial results in FY24:
- Revenue: Rs 11,562.48 lakhs
- EBITDA: Rs 926.62 lakhs
- PAT: Rs 486.24 lakhs
Important Dates
Key dates for investors to note:
- Subscription Period: January 24-28, 2025
- Share Allotment: January 29, 2025
- Expected Listing: January 31, 2025
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