Om Freight Forwarders IPO Day 3: The initial share sale of Om Freight Forwarders Ltd, a logistics and freight forwarding firm, saw a subscription of 2.56 times by the second day of bidding, which was on Wednesday, October 1. The company commenced its public offering for subscription on September 29, with the Om Freight Forwarders IPO open until October 3. Om Freight Forwarders IPO price band was set between ₹128 and ₹135 per share.
Headquartered in Mumbai, Om Freight Forwarders specializes in various logistics services, including international freight forwarding, customs clearance, vessel agency operations, transportation, warehousing, and distribution. The company has confirmed the allocation of 11,77,710 equity shares to anchor investors at ₹135 per share. Notably, it raised ₹15.9 crore from three anchor investors just a day before launching its public IPO on September 26.
The anchor book had participation from only three entities: Craft Emerging Market Fund, Rajasthan Global Securities, and Abundantia Capital. As a third-generation logistics company with over four decades of experience, Om Freight Forwarders operates across five continents and serves over 700 locations. The firm is committed to technology integration, providing services such as paperless documentation, GPS tracking, and real-time shipment monitoring alongside its broader logistics offerings.
Om Freight Forwarders IPO GMP today
Om Freight Forwarders IPO GMP today is ₹7. This indicates Om Freight Forwarders share price was trading at a premium of ₹7 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Om Freight Forwarders share price is indicated at ₹142 apiece, which is 5.19% higher than the IPO price of ₹135.
According to the grey market trends from the past week, today’s IPO GMP is rising, indicating a promising listing. Experts report that the lowest GMP stands at ₹3, while the highest reaches ₹11.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Om Freight Forwarders IPO subscription status
Om Freight Forwarders IPO subscription status was 3.87x on day 3. The retail portion was subscribed 2.75 times, and NII portion has been booked 7.39 times, Qualified Institutional Buyers (QIBs) portion received 3.97x bids. The employee portion booked 57%.
The company has received bids for 3,06,06,030 shares against 79,16,945 shares on offer, at 17:06 IST, according to data on BSE.
Om Freight Forwarders IPO review
Harshal Dasani, the head of business at INVAsset PMS, emphasized that the organization has a solid base owing to its extensive operational history, diverse range of services such as customs clearance, ocean and air freight, and warehousing, along with a low degree of financial leverage that supports growth. However, the company faces challenges including limited profitability in comparison to larger, more integrated logistics firms, susceptibility to variations in freight rates, and exposure to cycles in working capital.
The proceeds from the new issuance are allocated for capital investments and overall corporate requirements, with the goal of boosting service capabilities. Short-term profits from the listing may be constrained by the substantial valuation and size of the offer for sale, making market sentiment and subscription quality critical factors.
Looking to the future, the long-term potential depends on Om Freight’s ability to enhance margins through technological advancements, automation, and value-added services while increasing return ratios to double digits. This will ultimately determine whether investors see growth beyond the initial public offering.
Om Freight Forwarders IPO details
Om Freight Forwarders, which offers third-party logistics services, aims to raise funds through a new issue totalling ₹25 crore and an Offer for Sale (OFS) of up to 72.5 lakh shares from its promoters.
The IPO of Om Freight Forwarders plans to use the net proceeds for funding the company’s capital expenditure requirements associated with acquiring commercial vehicles and heavy machinery, along with general corporate purposes. Smart Horizon Capital Advisors Pvt. Ltd. serves as the lead manager for the book running, and Bigshare Services Pvt. Ltd. has been appointed as the registrar for this offering.
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