The issue received a modest response from investors during its three-day public offering, despite the company’s strong financial performance and industry position.
The Rs 307-crore IPO, which ran from September 29 to October 1, saw an overall subscription of 2.12 times, driven largely by non-institutional investors (NIIs), who bid 3.08 times their allotted quota. Qualified institutional buyers (QIBs) subscribed 1.84 times, while the retail category managed a moderate 1.47 times subscription.
The company had earlier raised Rs 55.26 crore from anchor investors, with the anchor book accounting for 18% of the issue size.
The IPO comprised a fresh issue of Rs 160 crore and an offer-for-sale (OFS) of Rs 147 crore by promoters and early shareholders. Funds from the fresh issue will primarily be used to purchase commercial vehicles and containers, strengthen Glottis’ logistics capacity, and support general corporate purposes.
Company overview
Glottis provides integrated logistics solutions through ocean, air, and road transport. The company handled nearly 95,000 TEUs of imports in FY24 and serves over 1,200 clients across 119 countries, supported by a network of 171 overseas agents, 98 shipping lines, and 22 airlines.Financially, Glottis has demonstrated robust growth. Its revenue nearly doubled year-on-year to Rs 942.5 crore in FY25 from Rs 499 crore in FY24, while net profit surged 81% to Rs 56.1 crore. However, analysts believe the IPO was fully priced, with a P/E multiple of around 21x on post-issue earnings, leaving little room for near-term listing gains.
Market watchers also note that logistics is a highly competitive and cyclical sector, making sustained profit growth dependent on freight demand and cost efficiencies.
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Over the longer term, investors will watch how effectively the company utilizes the IPO proceeds to expand its asset base and strengthen its foothold in India’s fast-evolving logistics ecosystem.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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