GB Logistics Makes Weak Debut on BSE, Lists at 20% Discount

Logistics services provider GB Logistics Commerce Ltd had an underwhelming market debut on Friday, January 31, as its shares listed at a 20% discount on the BSE SME platform.

Listing Performance

The stock opened at ₹81.6 per share, significantly lower than its issue price of ₹102 per share, resulting in an immediate loss of 20% for investors. Shortly after listing, the stock hit the lower circuit limit of ₹77.55 per share, indicating continued selling pressure.

Trading Activity and Market Capitalization

• Within just five minutes of trading, over 4.87 lakh shares were exchanged on the BSE.
• The total turnover during this short period stood at ₹3.94 crore.
• At the listing price, the company’s market capitalization was recorded at ₹63.63 crore.

For IPO investors, this meant a significant loss. Each lot of 1,200 shares, which originally cost ₹1,22,400 (₹102 x 1,200), was now worth ₹97,920 (₹81.6 x 1,200)—a listing loss of ₹24,480 per lot.

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GB Logistics Commerce IPO Overview

GB Logistics Commerce Ltd raised ₹25.07 crore through its IPO, which was open for subscription from January 24 to January 28, 2025. The issue consisted of a fresh offering of 24.58 lakh equity shares, with a price band of ₹95 to ₹102 per share.

Despite its weak listing, the IPO saw strong investor interest, with an impressive 185 times subscription. The company received bids for 30.28 crore equity shares against an offer size of 16.34 lakh shares.

Investor Category-Wise Subscription

• Retail Investors: Subscribed 122.07 times (9.97 crore shares bid for 8.17 lakh available shares).
• Non-Institutional Investors (NIIs): Subscribed 402.08 times (19.06 crore shares bid for 3.5 lakh available shares).
• Qualified Institutional Buyers (QIBs): Subscribed 27 times (1.25 crore shares bid for 4.66 lakh available shares).

Company Overview and Business Model

GB Logistics Commerce Ltd provides logistics services to medium and large enterprises. The company owns a fleet of closed-body, light and heavy trailer trucks for transportation. Additionally, it operates in the trading of agricultural commodities.

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Utilization of IPO Funds

As per the company’s Red Herring Prospectus (RHP), the IPO proceeds will be used for:

• Debt repayment: ₹5 crore
• Working capital requirements: ₹9.38 crore
• Purchasing truck chassis and bodies: ₹3.8 crore
• General corporate purposes: Remaining amount

Financial Performance

• April–September FY25: Revenue of ₹50.85 crore and a net profit of ₹2.52 crore.
• FY 2023-24: Revenue of ₹115.63 crore and a net profit of ₹4.86 crore.

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Conclusion

While GB Logistics Commerce Ltd witnessed exceptional demand during its IPO subscription period, its weak listing performance suggests that market sentiment remains cautious. The company’s ability to utilize the IPO funds effectively and drive future growth will be crucial in determining its stock performance in the coming months.