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Om Freight Forwarders IPO Sees Strong Demand; Subscribed 3.02 Times on Day 2

Om Freight Forwarders

The initial public offering (IPO) of Om Freight Forwarders Ltd, a Mumbai-based logistics and freight forwarding company, has attracted healthy investor participation. By the second day of bidding on October 1, the issue was subscribed 3.02 times, with robust interest coming from non-institutional and institutional investors.

The IPO opened for subscription on September 29 and will close on October 3. The price band was fixed at ₹128–₹135 per share. Ahead of the launch, the company raised ₹15.9 crore by allotting 11,77,710 equity shares at the upper price band of ₹135 each to three anchor investors—Craft Emerging Market Fund, Rajasthan Global Securities, and Abundantia Capital.

Subscription details

As per BSE data, Om Freight received bids for 2.39 crore shares against 79.16 lakh shares on offer by 11:39 AM on Wednesday. The retail investor category was subscribed 1.91 times, while the non-institutional investor (NII) portion saw 5.70 times subscription. Qualified Institutional Buyers (QIBs) bid 3.95 times their quota, whereas the employee segment was subscribed 44%.

Grey market premium (GMP)

In the unlisted market, Om Freight’s IPO is showing a premium. The GMP stood at ₹7, indicating an estimated listing price of around ₹142 per share, which is about 5.2% higher than the issue price of ₹135. Market trackers noted that the GMP has fluctuated between ₹3 and ₹11 in the past week, reflecting improving sentiment.

Company profile

Om Freight Forwarders, a third-generation family-run enterprise with more than four decades of experience, offers a wide range of logistics solutions. Its services include international freight forwarding, customs clearance, vessel agency operations, warehousing, distribution, and transportation. The company has a global presence across five continents, servicing over 700 locations, and emphasizes technology-driven offerings such as GPS tracking, real-time shipment monitoring, and paperless documentation.

Expert views

Market analysts remain cautiously optimistic. Harshal Dasani, Head of Business at INVAsset PMS, pointed out that the company benefits from a strong operating history, diversified services, and low leverage. However, he also highlighted challenges such as thin profitability compared to larger peers, vulnerability to freight rate fluctuations, and working capital cycles.

The company intends to use proceeds from the fresh issue—amounting to ₹25 crore—for capital expenditure on commercial vehicles and heavy machinery, as well as for general corporate purposes. In addition, promoters are offloading 72.5 lakh shares through the Offer for Sale (OFS).

Outlook

Analysts suggest that short-term listing gains may depend on overall market sentiment and quality of subscriptions, given the valuation levels. Over the long term, Om Freight’s ability to enhance margins through automation, value-added services, and stronger return ratios will play a key role in determining sustained investor interest.

Smart Horizon Capital Advisors Pvt. Ltd. is acting as the book-running lead manager, while Bigshare Services Pvt. Ltd. is the registrar to the issue.

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