Source: MInts
On October 7, logistics company Glottis Ltd., based in Chennai, was listed on the stock market at a poor level, with shares at a 35 percent discount to the issue price when it listed on the National Stock Exchange (NSE).
Weak Opening on Dalal Street
Glottis’ shares are listed at ₹84 per share on the NSE, or a decline of 34.88% from its issue price of ₹129 per share. On the BSE, the stock began trading at ₹88, or a discount of 31.78%. Glottis had set a price band of ₹120–₹129 per share for its initial public offering.
After the listing, the company had a market capitalization of ₹813.15 crore.
The IPO was available for subscription from September 29 to October 1, and it was subscribed to around twice at the end. Glottis had previously raised over ₹55 crore from anchor investors before the public offering.
Use of Proceeds
The company stated it intends to use the proceeds from the IPO for three principal uses:
- Purchase commercial vehicles to expand the fleet
- Repay or prepay existing debt
- General corporate purposes
These proceeds are expected to assist Glottis in strengthening operations and supporting the company’s business growth in the logistics industry.
About the Company
Glottis is an integrated logistics service provider offering multi-modal transportation solutions and is headquartered in Chennai. The company specializes in energy supply chain solutions and provides logistics services for a range of industries, including renewable energy, engineering products, granite & minerals, consumer durables, automobiles, FMCG, textiles, construction, chemicals, plywood and medical devices.
It has a countrywide network of 8 branch offices in New Delhi, Gandhidham, Kolkata, Mumbai, Tuticorin, Coimbatore, Bengaluru, and Cochin.
Factors for Poor Listing
Market experts have mentioned that the weak listing may be due to subdued investor sentiment, high IPO valuation and muted grey market activity. The IPO may have received subscriptions, but it did not attract enough interest from institutional investors or retail investors.
Issues impacting logistics, such as increases in fuel costs and tight margins, may have also negatively impacted investor confidence.
Summary: Investors will turn their attention to Glottis’s next financial results to see how well it utilizes the IPO proceeds and improves profitability. If the next few quarters go well, it could help restore confidence and lift the stock price.
