Om Freight Forwarders IPO kicks-off: Is it worth subscription?

The initial public offering (IPO) of Om Freight Forwarders has opened for bidding on Monday, September 29. The logistics solutions player is offering its shares in the range of Rs 128-135 apiece. Investors can apply for a minimum of 111 equity shares and its multiples thereafter. Bidding for the issue shall conclude on Wednesday, October 01.

The IPO of Om Freight Forwarders is looking to raise a total of Rs 122.31 crore via IPO, which includes fresh share sale of Rs 24.44 crore and an OFS of up to 72.5 lakh shares worth Rs 97.88 crore. The net proceeds from the issue shall be utilized towards funding of the capital expenditure requirements for acquisition of commercial vehicle and heavy equipment and general corporate purposes .

Incorporated in June 1995, Om Freight Forwarders is a third-generation logistics company based in Mumbai, India. With over four decades of expertise, it operates across five continents, serving over 700 locations. It emphasises technology integration, offering paper-free documentation, GPS tracking, and real-time shipment monitoring.

Om Freight operates across 500 continents, serving over 800 locations and owns a fleet of 152 commercial vehicles and 22 logistic partners, said Ventura Securities. "In FY 2025, it managed total cargo volumes of 66.86 million metric tons (MMTS), said Ventura Securities with a 'subscribe' rating.

Om Freight Forwarders raised a total of Rs 15.90 crore via 3 anchor investors as it allocated 11,77,710 equity shares at Rs 135 apiece. Its anchor book included names like Craft Emerging Market Fund, Rajasthan Global Securities and Abundantia Capital VCC. Last heard, the company was commanding a grey market premium of Rs 11 apiece, suggesting 8 per cent gains for the investors.

Om Freight Forwarders is well-positioned to benefit from these opportunities, said Master Capital Services. "Its strong relationships with clients across diverse industries, presence at all major Indian ports and airports, and global network through associations give it a competitive edge. Investors may consider the IPO as a potential long-term investment opportunity," it said.

Om Freight Forwarders reported a net profit of Rs 21.99 crore with a revenue of Rs 494.05 crore for the year ended on March 31, 2025. The company clocked a bottomline of Rs 10.35 crore with a revenue of Rs 421.32 crore for the year 2023-24. The company shall command a market capitalization of Rs 455 crore.

Near-term geopolitical and macroeconomic uncertainties add risk to growth visibility. 80 per cent of the issue comprises an offer for sale (OFS), said BP Equities. "In light of these factors, we remain largely cautious of the listing. We recommend an 'avoid' rating for the issue and will reassess our rating in future following sustained business performance in upcoming quarters," it added.

Om Freight Forwarders has reserved 50 per cent of the net offer for qualified institutional bidders (QIBs), while retail investors and non-institutional investors (NIIs) have 35 per cent and 15 per cent allocation, respectively. Smart Horizon Capital Advisors is the book running lead manager and Bigshare Services is the registrar of the issue. Shares will be listed on both BSE and NSE.