GB Logistics Limited is coming up with an IPO consisting of a fresh issue of  24,57,600 shares worth INR 25.07 Crores. The company aims to repay or prepay borrowings availed by the company, working capital, funding expenditure towards the purchase of truck chassis and truck bodies, and general corporate purposes.

GB Logistics IPO – Important Dates

Read more about GB Logistics Commerce Limited IPO GMP

GB Logistics Commerce Limited IPO – Company Profile

GB Logistics Commerce Limited specialises in full truckload freight services tailored for large and medium-sized enterprises. By harnessing a blend of proprietary and third-party transportation services, the company orchestrates logistics operations with efficiency.

The company operates in two primary sectors: logistics and trading of agricultural commodities. GB Logistics Commerce Limited is dedicated to providing exceptional customer service and is committed to excellence.

The company prides itself on being a dependable partner for businesses spanning various sectors, offering complete solutions for cargo movement needs. In addition, the company also owns a wholly-owned subsidiary, GB Hospitality (India) Private Limited.

GB Logistics Commerce Ltd IPO Fundamental Analysis

GB Logistics Commerce Limited’s financial analysis reveals a growing performance. Revenue has increased, with increasing profitability, EPS, and decreased RoNW, and liquidity highlighting challenges despite asset growth, rising equity, and improved inventory turnover, indicating potential operational efficiency. 

• Revenue Trend: The revenue increased from ₹4,029.93 lakhs in March 2023 to ₹6,445.36 lakhs in March 2024. The revenue for the current year’s 6-month period ending September 2024 is INR 2,620.78 lakhs. 
• Equity and Liabilities: Equities have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating rising reliance on debt financing. 
• Profitability: The profit after tax (PAT) has significantly increased from ₹76.86 lakhs in March 2023 to ₹360.37 lakhs by March 2024. 
• Earnings per Share (EPS): The diluted EPS has increased from ₹1.34 in March 2023 to ₹8.48 by March 2024, reflecting higher earnings per share for investors. 
• Return on Net Worth (RoNW): The RoNW has decreased from 42.65% to 27.36%, indicating a decrease in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. 
• Inventory Turnover Ratio: There’s an increase in the Inventory Turnover Ratio, which might suggest faster sales or efficient inventory management. 

GB Logistics IPO Financial Analysis

GB Logistics Commerce Limited IPO Peer Comparison

GB Logistics Commerce Limited shows a high ROE and ROCE when compared to its peers. VRL Logistics excels in revenue and has the highest PE when compared to others, Ritco Logistics and  Orissa Bengal Carrier Limited show stable growth and consistent results.

GB Logistics Commerce Ltd IPO Objective

The main objective of GB Logistics Limited is to repay or prepay borrowings availed by the company, working capital, to fund expenditure towards the purchase of truck chassis and truck bodies, and for General corporate purposes.

1. Prepayment or repayment of a portion of certain outstanding borrowings availed by the company: The company intends to utilise INR 500 lakhs from the Net Proceeds for the repayment or prepayment repayment of certain borrowings, aiming to deleverage the company, reduce debt servicing costs, and support business growth.

2. Working Capital Requirements: The company requires INR 937.77 lakhs to meet its working capital requirement and short-term financial obligations while maintaining its day-to-day operations.

3. Fund expenditure towards the purchase of truck chassis and truck bodies: The expenditure towards the purchase of truck chassis and truck bodies is INR 380.00 lakhs, an important capital investment for the business as it is involved in logistics.

4. General corporate purposes: The company has not earmarked the balance amount for any specific project or capital expenditure (CapEx), and instead, the funds will be utilised for the day-to-day operations or other overarching needs of the business. 

GB Logistics IPO Risks And Challenges

GB Logistics risks include existing legal proceedings, not complying with certain statutory provisions and over-dependency on road networks.

1. There are certain pending legal proceedings involving the Company as well as the Promoter and Directors of the Company. Any adverse outcome of such proceedings may affect their business, financial condition, and reputation.

2. The company has not complied with certain statutory provisions of the Companies Act. Such non-compliance may attract penalties and other actions against the Company and its Directors, which could impact the financial position of the business to that extent.

3. Their business is dependent on the road network and the ability to utilise their vehicles in an uninterrupted manner. Any disruptions or delays in this regard could adversely affect them and lead to a loss of reputation or profitability.

GB Logistics Commerce Ltd IPO – Industry & Market Potential

The Indian logistics industry is projected to surge, with a predicted value of US$ 380 billion by 2025, growing at an impressive rate of 10%-12% annually. This exponential growth is attributed to the flourishing e-commerce sector and technological advancements. 

As the industry evolves with advancements like Transportation Management Systems (TMS) and Warehouse Management Systems (WMS), GB Logistics Commerce Limited can enhance its operational efficiency and offer superior customer service, thereby gaining a competitive edge.

India has become a net exporter of agricultural products. In FY 2022–2023, farm exports reached $50.2 billion. The agriculture sector’s robust growth is fueled by rising exports, where the company can leverage its freight services and cargo solutions to meet transportation and trading demands for these staple crops.

GB Logistics Commerce Limited IPO – Type of Offer

GB Logistics Commerce Limited plans a fresh issue of 24,57,600 shares, seeking the amount of INR 25.07 crores, to repay borrowings, for working capital, to fund expenditure towards the purchase of truck chassis and truck bodies, and for general corporate purposes.

1. Fresh Issue: The company will issue 24,57,600 new shares to raise capital. The company intends to utilise the proceeds from the fresh issue to repay borrowings and for other day-to-day business purposes.

GB Logistics IPO Offer Size

The offer size of GB Logistics is INR 25.07 crores, consisting of a fresh issue of  24,57,600 shares. The company aims to repay or prepay borrowings for the company, for working capital, to fund expenditure towards the purchase of truck chassis and truck bodies, and for general corporate purposes.

GB Logistics Commerce Limited IPO Allotment Structure

GB Logistics Commerce Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

How to apply for the GB Logistics IPO?

To apply for the GB Logistics IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the GB Logistics Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the GB Logistics IPO Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check GB Logistics IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the GB Logistics IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the GB Logistics IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

Apart from Alice Blue, there are other ways to check the allotment status of the GB Logistics IPO:

● Registrar’s Website: Visit the website of Maashitla Securities, the registrar of the GB Logistics IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status. 

● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

GB Logistics Commerce Ltd IPO Offer Registrar

The registrar for the GB Logistics Commerce Limited IPO is Maashitla Securities Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar:

Maashitla Securities Private Limited

451, Krishna Apra Business Square, 

Netaji Subhash Place, Pitampura,

Delhi-110034

Tel No: +91 -11-4512-1795;

Email: [email protected]

Website: https://www.maashitla.com/

GB Logistics SME IPO – FAQs

Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.