Glottis
IPO Size: Rs. 307 cr
- Fresh Issue of Rs. 160 cr for capex (Rs. 133 cr for purchase of trucks and containers)
- Offer for Sale (OFS) of Rs. 147 cr by the promoter (100% stake to drop to 74%)
Price band: Rs. 120-129 per share
M cap: Rs. 1,192 cr, implying 26% dilution
IPO Date: Mon 29th Sep 2025 to Wed 1st Oct 2025, Listing Tue 7th Oct 2025
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
Multi-modal Integrated Logistics Company
Glottis Limited is a 21 year old Chennai-based logistics company, providing end-to-end services, with ~83% of revenue generated from ocean freight imports. As of 31 Aug 25, it owned 17 commercial vehicles and partnered with 77 business partners. From current asset light model, it is moving towards ‘hybrid’ model for freight forwarding, by purchasing commercial vehicles and containers from IPO proceeds.
Inconsistent Performance
Glottis handled 1.1 lakh TEU ocean imports in FY25, with volume handled or throughput up 18% YoY and realization up 60%, leading to 89% YoY rise in revenue to Rs. 941 cr. While YoY revenue saw this massive jump, from FY22 revenue of Rs. 876 cr, the 3 year revenue CAGR has been barely 2.4%.
Also, company’s margins have been quite inconsistent, with net margin swinging from 3.7% in FY22 to 6.0% in FY25. In FY25 too, H1 net margin was at 7.2%, while H2FY25 margin was at 4.9%, despite rise in volume and revenue in second half. These variations in financials for IPO-bound companies are not viewed in good light by the prospective investors.
Micro-Cap Stock
M cap of nearly Rs. 1,200 cr, for the wholly-promoter owned company, implies a PE multiple of 18.4x on FY25 EPS of Rs. 7. This makes it fully valued for small scale of operations and inconsistent financial performance.
Smaller peers engaged in exim freight forward such as Tiger Logistics with Rs. 540 cr topline, 5% net margin is ruling at a PE of 18x, while SJ Logistics with Rs. 500 cr topline and 10% net margin is trading at only 11x PE.
Closing Remarks
An asset-light logistics player, Western Carriers is ruling at 24% below IPO price, undertaken a year, indicating poor discounting of the logistics sector, by Indian stock market investors, at present.
Moreover, nearly half of Glottis’ business comes from renewable energy sector, like import of solar panels, which may slow down due to massive domestic capacity addition and backward integration to domestic solar cell manufacturing.
