GB Logistics had a weak debut on the BSE SME platform, opening at ₹81.60, 20% lower than its IPO price of ₹102. Despite this, the IPO was highly subscribed.
GB Logistics Commerce Limited, a company specializing in logistics services and agricultural commodities, had a weak debut on the BSE SME platform today. The company’s shares opened at ₹81.60 each, marking a 20% discount from its issue price of ₹102. Despite the weak market debut, the initial public offering (IPO) of GB Logistics had garnered strong interest, being subscribed 184.64 times during the subscription period from January 24 to January 28, 2025.
Founded in 2019, GB Logistics provides a range of logistics solutions, including freight services for large and medium-sized enterprises. The company operates in two main business segments: logistics and the trading of agricultural commodities, giving it a diversified presence in both sectors. GB Logistics leverages a fleet of vehicles, qualified drivers, and a flexible charter network to cater to its clients’ transportation needs. Its full truckload freight services have helped it establish a solid market footprint.
The IPO offered a fresh issuance of 24,57,600 equity shares with a face value of ₹10 each, raising ₹25.07 crore. The funds will be used for several purposes, including prepayment of borrowings, purchasing truck chassis, financing working capital, and general corporate activities.
As per the company’s Red Herring Prospectus (RHP), GB Logistics compares itself with industry peers such as VRL Logistics Ltd, Ritco Logistics Ltd, and Orissa Bengal Carrier Ltd. The company intends to use the capital raised to further expand its operations and capabilities in the logistics and agricultural commodities sectors.
IPO Details
- Issue Price: ₹95 – ₹102 per share
- Subscription Status: 184.64 times
- Total Funds Raised: ₹25.07 crore
- Listing: BSE SME platform
While the shares opened at a discount, the strong demand during the subscription period signals investor confidence in the company’s growth prospects. The IPO also had a grey market premium of ₹16, suggesting that the estimated listing price could have been ₹118 per share, which was approximately 15.69% higher than the IPO price. However, the stock’s opening at ₹81.60 suggests a cautious sentiment from the market.
Company Overview
GB Logistics Commerce Limited offers logistics services, with a focus on full truckload freight, and operates in the agricultural commodities space. By providing solutions that combine in-house resources and third-party services, the company aims to strengthen its position in the competitive logistics industry.
