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.

Glottis, a logistics company specializing in renewable energy transport, has opened its Initial Public Offering (IPO) for subscription. The Rs 307-crore IPO is priced in the band of Rs 120-129 per share, offering potential investors an opportunity to participate in the company's growth story.

IPO Details

• Issue Size: Rs 307.00 crore
• Price Band: Rs 120-129 per share
• Subscription Period: Open now, closes on October 1
• Listing Date: Scheduled for October 7 on NSE and BSE

The IPO comprises a fresh issue of shares worth Rs 160.00 crore and an offer for sale (OFS) of Rs 147.00 crore by promoters Ramkumar Senthilvel and Kuttappan Manikandan. In a positive development, the company has already secured Rs 92.00 crore from anchor investors, indicating strong institutional interest.

Company Overview

Founded in 2009, Glottis has established itself as a provider of multimodal logistics services, including ocean, air, and road freight. The company has carved out a niche for itself by specializing in logistics for the renewable energy sector.

Financial Performance

Glottis has demonstrated strong financial growth in recent years:

The company has nearly doubled its revenue and more than doubled its profit over the two-year period, showcasing robust growth.

Grey Market Premium

The grey market is showing enthusiasm for the Glottis IPO, with a premium of Rs 12.00 over the upper price band. This indicates a potential 9% listing gain for investors, although it's important to note that grey market premiums are unofficial and subject to change.

Analyst Recommendations

Canara Bank Securities has weighed in on the IPO, recommending it for long-term investors with a high-risk appetite. The brokerage cites Glottis's strategic positioning as a positive factor. However, they also flag potential concerns, including the company's exposure to the renewable energy sector and rising receivables.

Investors considering participation in the Glottis IPO are advised to carefully review the company's prospectus and consider their own risk tolerance before making an investment decision. As with all IPOs, potential returns should be weighed against the inherent risks of investing in newly public companies.