Om Freight
IPO Size: Rs. 122 cr
- Fresh Issue of Rs. 24 cr for capex (purchase of commercial vehicle and heavy equipment of Rs. 17 cr)
- Offer for Sale (OFS) of Rs.98 cr by the promoter (99% stake to drop to 72% post IPO)
Price band: Rs. 128-135 per share
M cap: Rs. 455 cr, implying 27% dilution
IPO Date: Mon 29th Sep to Fri 3rd Oct 2025, Listing Wed 8th Oct 2025
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
Mumbai-based 3rd Party Logistics (3PL) Company
Om Freight Forwarders, provides integrated logistics services for bulk cargo, such as international freight forwarding, customs clearance, vessel agency, multimodal transportation, warehousing, and distribution. It caters to customers across sectors with minerals, mining and steel, accounting for 1/4th revenue mix. Due to this, Om Freight’s realisation per TEU of Rs. 45,000 is nearly half of Glottis, a peer whose IPO is also open parallelly.
Other Income rules Financials
Om Freight handled 1.1 lakh TEUs in FY25, up 20% YoY, leading to proportionate jump in revenue to 19% YoY to Rs. 490 cr. But other income like forex gain, interest income, treasury accounted for majority of profit before tax, as much as 78% and 61% of PBT in FY24 and FY23 respectively. Share of other income in revenue mix dropped to 13% in FY25, but it highlights fragility of the financials.
FY25 PAT stood at Rs.22 cr, leading to 4.5% net margin and Rs. 6.9 EPS. Published data in DRHP indicate net margins swings between 1.6% in FY22 to 5.8% in FY23, raising red flags due to such sharp movements.
Grossly Overvalued
M cap of Rs.455 cr, implies a PE multiple of 19.6x, on historic basis, which is prohibitive for tiny scale of operations, inconsistency in core profitability and 13.5% RoE. The PE is also higher than comparable peer Glottis’ PE of 18x, IPO of which is opening on the same day as Om, despite being truly asset-light with 57% RoE and double the topline of over Rs. 900 cr.
Om Freight’s IPO is mainly for OFS by the promoters and hardly any growth visibility.
