Om Freight Forwarders IPO Day 2: GMP, Subscription, Strengths, Risks & All You Need to Know

Om Freight Forwarders is making its Dalal Street debut with a ₹122.3 crore IPO, priced at ₹128-₹135 per share. The issue combines a small fresh issue of ₹24.4 crore with a larger ₹97.9 crore Offer for Sale (OFS). On Day 1 of subscription, the IPO received bids at 1.39 times overall, with non-institutional investors showing the strongest response at over 4x. QIB demand was stable at 1.1x, while retail interest stayed relatively muted at 0.54x. Meanwhile, the GMP inched down to ₹9 from ₹11 a day earlier, signaling cautious optimism. As investors weigh the mix of healthy financials, regional dominance, and concentration risks, the response from institutional and large investors could decide the IPO’s eventual sentiment.

IPO Overview

• IPO Date: September 29 to October 3, 2025
• Total Issue Size: ₹122.31 crore
• Price Band: ₹128 to ₹135 per share
• Lot Size: 111 Shares
• Tentative Allotment Date: October 6, 2025
• Listing Date: October 8, 2025 (Tentative)
• Subscription Status: 1.39x as of day 1
• GMP: The GMP for Om Freight Forwarders IPO is ₹9, reflecting a 6.67% gain over the issue price, according to Chittorgarh.com (as of September 30).
  Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

Highlight of Day 1 of the IPO

On Day 1, Om Freight Forwarders IPO subscribed 1.39 times, largely driven by non-institutional investors at 4.03x, while QIBs stood at 1.1x, and retail booked just 0.54x of their quota. GMP has slightly softened from ₹11 before opening to ₹9 on Day 1, hinting at tempered listing expectations. The current trend implies a modest premium if sentiment sustains in the coming days.

Om Freight Forwarders Business Model

Om Freight Forwarders has been in business since 1995. It operates as a Third-Party Logistics (3PL) provider. In simple words, that means it manages shipments for other companies, taking care of key steps like international freight forwarding (shipping goods across borders), customs clearance, and cargo handling.

• International freight forwarding forms the biggest chunk - 52.1% of FY25 revenue.
• Customs clearance services (CHA) added another 17.3%.
• Vessel agency services contributed 14.4%.

Besides this, the company also handles project cargo, which is moving big or unusually heavy industrial cargo that needs technical expertise. It serves 1,715 customers across industries, but the bulk of its income comes from steel, minerals, and mining (26.5% of FY25 revenue).

The company uses a hybrid asset model – it owns some vehicles (135 fleets) and rents others, allowing flexibility. But Maharashtra accounts for 89% of its revenue, making it heavily dependent on one geography.

Objectives of the IPO

The IPO money is being split into two parts:

Fresh Issue (₹24.4 crore)

• ₹17.1 crore to buy commercial vehicles and heavy equipment.
• The rest for business expenses and small growth initiatives.

Offer for Sale (₹97.9 crore)

• Goes to the promoters; no money from this part will reach the company.

Strengths:

• Efficient operations: Return on Equity (RoE) of 13.5% in FY25 means the company makes ₹13.5 profit on every ₹100 shareholders have invested.
• Low debt: Debt-to-equity is just 0.17x, meaning very little borrowing compared to the size of the business.
• Strong debt coverage: DSCR of 8.1x in FY25, showing it can easily repay debt from regular cash flows.
• Customer stickiness: Over 75% of revenue in FY25 came from repeat clients.
• Explosive volume growth: Cargo volumes jumped from 21 MMT in FY23 to almost 67 MMT in FY25.

Risks:

• Revenue dependency: 89% revenue comes from Maharashtra, and 40% from just 10 customers. That’s a big concentration risk.
• Volatile margins: RoE fell as low as 7.1% in FY24 during the Russia-Ukraine shock, before recovering in FY25.
• Business model risks: Depends on short-term vessel leases, which makes pricing and capacity dependent on shipping line cooperation.
• High OFS portion: 80% of the IPO is OFS, which means promoters are cashing out - not the company raising growth money.
• Cost exposure: Fuel, forex, and working capital swings can quickly erode margins.

For detailed information, visit Om Freight Forwarders’ IPO page.

Peer Comparison

The company competes with Tiger Logistics, Total Transport Systems, AVG Logistics, and Patel Integrated Logistics.

• RoE (13.5%) is better than peers like AVG Logistics (9.6%) and Patel Integrated (6.3%).
• RoCE (15.8%) beats three out of the four listed comparables.
• Debt coverage (8.1x) is much stronger than peers, which mostly stay under 1.1x.
• But geographic concentration and reliance on short leases make it riskier than some larger diversified peers.

Source: RHP, internal calculation

IPO Valuation

At the upper price of ₹135, Om Freight Forwarders is asking for a P/E of 20.7x FY25 earnings.

• Peer average sits at ~15.6x, with the highest being 19.7x.
• So, Om Freight is priced above the industry range.

How to read this? Investors will be paying a premium for what the company claims is higher efficiency (RoE, RoCE) and much stronger debt repayment capacity than peers. But valuation comfort is thin because earnings history has been volatile.

Disclaimer: The P/E ratio here is calculated using the company’s post-IPO equity and its most recent FY25 net profits at the upper end of the price band.

The People Behind Om Freight Forwarders

The company is driven by the Joshi family, who continue to control more than 90% of shares before the IPO.

• Rahul Jagannath Joshi (Chairman & MD): With 29+ years in freight forwarding, he has built the company from scratch and is responsible for strategy and operations. However, corporate governance concerns exist, as he and his son Harmesh once faced disqualification due to another firm’s compliance lapses. Interestingly, Rahul also owns the 45 trademarks that Om Freight Forwarders licenses under an agreement. His FY25 remuneration was ₹10.8 crore.
• Jitendra Maganlal Joshi (Executive Director): Co-promoter with similar 29 years of experience, overseeing day-to-day freight operations, paid ₹1.9 crore in FY25.
• Harmesh & Kamesh Joshi: Next-gen promoters and executive directors, both sons of Rahul, running sea exports, transport, and warehousing. Combined pay in FY25 was around ₹7.7 crore.

Who’s Making Money from the IPO?

A large part of this IPO is promoters cashing out.

• Rahul Jagannath Joshi (MD): Offloading up to 39.9 lakh shares worth ₹53.8 crore.
• Harmesh Joshi: Selling 25.3 lakh shares worth ₹34.3 crore.
• Kamesh Joshi: Selling 7.3 lakh shares worth ₹9.8 crore.

Important to note: since their acquisition cost is nil (bonus shares issued in 2024), this OFS is almost a complete profit booking for them. That also means proceeds won’t fund growth but rather enable promoters to monetize holdings.

Industry Outlook

India’s logistics sector contributes nearly 13-14% of GDP, making it one of the most crucial backbones of the economy. With GDP growth at 6.5%, and government initiatives like Make in India and PLI pushing manufacturing, demand for efficient logistics is only going to increase. The organized warehousing segment, driven by e-commerce and 3PL customers, could account for 55-60% of new demand. However, challenges remain with high costs, fragmented competition, and rising input costs (fuel, forex), putting stress on operators.

Analyst View

Om Freight Forwarders positions itself as a regionally strong logistics company with steady margins, lean debt, and a business model backed by customer stickiness. Subscription trends point to clear confidence from larger investors, though retail enthusiasm is still weak. The dip in GMP from ₹11 to ₹9 mirrors this cautious mood, suggesting expectations of only moderate listing gains. Positives include scale in the Western region, operational efficiency, and a low-leverage balance sheet. However, the heavy tilt towards promoter OFS, geographic concentration, and limited visibility on pan-India expansion remain key risks. At 20.7x P/E, valuations demand a premium over peers. For investors, this makes it less about short-term listing gains and more about confidence in the company’s ability to sustain growth in India’s competitive logistics market.

How to Apply for an IPO on INDmoney?

1. Download the INDmoney app and complete your KYC.
2. Go to INDstocks → IPO, or just search “IPO”.
3. Tap on an IPO from the list of live IPOs.
4. View key details like price band, lot size, and dates.
5. Tap Apply Now and choose the number of lots.
6. Use INDpay UPI for instant mandate tracking.
7. Your funds will be blocked until the share allotment is finalized.

For a seamless application process, visit the INDmoney IPO page.

Disclaimer

Source: Om Freight Forwarders' RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.