The initial public offering (IPO) of Glottis, a logistics company specializing in the renewable energy sector, entered its second day with a subscription rate of 42%. The Rs 307 crore IPO has received bids for 84.72 lakh shares against the 2.01 crore shares on offer.

Subscription Details

• Overall subscription: 42%
• Qualified Institutional Buyers (QIBs): 1.79 times oversubscribed
• Retail investors: 22% subscribed
• Non-institutional investors: 16% subscribed

IPO Specifics

• Issue size: Rs 307 crore
• Fresh issue: Rs 160 crore
• Offer-for-sale: Rs 147 crore
• Price band: Rs 120-129 per share
• Closing date: October 1

Grey Market Performance

The grey market premium for Glottis shares has declined from 9% on Day 1 to 5.4% on Day 2, indicating a slight decrease in investor enthusiasm.

Company Overview

Glottis, founded in 2009, provides multimodal logistics services with a focus on the renewable energy sector. The company has shown significant growth in recent years:

Analyst Perspectives

While Glottis has demonstrated strong growth, analysts have noted some concerns:

• Rising working capital intensity
• Increased receivables
• Exposure risks to the renewable energy sector

Canara Bank Securities recommends the IPO for long-term investors with a higher risk appetite, citing the company's position in integrated logistics.

Anchor Investment

Prior to the public offering, Glottis successfully raised Rs 92 crore from anchor investors, indicating some institutional interest in the company.

As the IPO progresses, investors will be closely watching the subscription levels across different categories and any changes in the grey market premium. The final outcome of the IPO will be determined by the overall market conditions and investor sentiment towards the logistics sector and Glottis' business model.

Glottis Ltd., a logistics solutions provider, launched its Initial Public Offering (IPO) with a lukewarm response from investors on the first day of subscription. The IPO, which aims to raise Rs 307 crore, was subscribed only 0.02 times by the end of day one, indicating a cautious approach from market participants.

IPO Details

• Issue Size: Rs 307 crore
  • Fresh Issue: Rs 160 crore
  • Offer-for-Sale: Rs 147 crore
• Price Band: Rs 120 - Rs 129 per share
• Subscription Period: Closes on October 1
• Listing Date: Scheduled for October 7 on BSE and NSE

Subscription Status (Day 1)

Grey Market Premium

The grey market premium for Glottis shares stands at Rs 12, suggesting an estimated listing price of Rs 141. This indicates potential gains of 9.30% over the upper price band.

Company Profile

Glottis Ltd. specializes in providing comprehensive logistics solutions across various transportation modes:

• Ocean transport
• Air transport
• Road transport

The company operates through a network of eight branch offices spread across India, enabling it to serve a diverse client base.

Fund Utilization

Glottis plans to utilize the proceeds from the fresh issue for capital expenditure, which includes:

• Acquisition of commercial vehicles
• Purchase of containers

These investments aim to enhance the company's operational capabilities and expand its logistics infrastructure.

Market Sentiment

The muted response on the first day of the IPO suggests that investors are approaching the offer with caution. The retail segment showed slightly better interest with a 0.04 times subscription rate, while institutional investors have yet to participate.

As the IPO continues until October 1, it remains to be seen whether investor sentiment will improve in the coming days. Market participants will be closely watching the subscription levels across different investor categories and any potential changes in the grey market premium as indicators of the IPO's overall attractiveness.

Investors considering participation in the Glottis IPO are advised to carefully review the company's financials, growth prospects, and the broader market conditions before making an investment decision.