Om Freight Forwarders IPO: A Strategic Gateway to Global Logistics Growth
Company Snapshot
Founded in 1986, Om Freight Forwarders Ltd. is a third-generation logistics company headquartered in Mumbai. With over 45 years of operational expertise, the company has evolved into a trusted partner for businesses seeking seamless supply chain solutions across the globe.
The company’s service portfolio covers all critical aspects of logistics, including:
- International Freight Forwarding – Both air and sea freight services, backed by a strong partner network.
- Customs Clearance – Expertise in navigating regulatory frameworks for smooth cargo movement.
- Vessel Agency Operations – Efficient port and marine logistics handling.
- Warehousing and Distribution – Strategically located warehouses and last-mile delivery support.
- Digital Solutions – Paperless documentation and real-time shipment tracking for complete visibility.
Today, Om Freight operates across 700+ global locations and manages a dedicated fleet of 135 vehicles. Its reputation is built on reliability, operational excellence, and technology-driven logistics, making it a competitive player in India’s fast-expanding logistics sector.
Operating across 700+ global locations and managing a fleet of 135 vehicles, Om Freight has built a reputation for reliability, tech-driven logistics, and global reach.
IPO Details
|
Attribute |
Value |
|
IPO Open Date |
September 29,
2025 |
|
IPO Close
Date |
October 3,
2025 |
|
Issue Size |
₹122.31 crore |
|
Fresh Issue |
₹24.44 crore |
|
Offer for
Sale |
₹97.88 crore |
|
Price Band |
₹128 – ₹135
per share |
|
Lot Size |
111 shares |
|
Minimum
Investment |
₹14,985 |
|
Listing Date |
Tentatively
October 8, 2025 |
|
GMP (Grey
Market Premium) |
₹11 (approx.
8.15% gain) |
Financial Performance
Om Freight has demonstrated steady revenue growth and improving profitability in recent years, reflecting both demand for logistics solutions and efficiency gains from its asset-light, tech-enabled model.
- Revenue (FY25): ₹494.05 crore – A 17% YoY growth, highlighting strong demand and scalability.
- PAT (FY25): ₹21.99 crore, compared to ₹10.03 crore in FY24 – showing more than 2x growth in profitability.
- Debt-to-Equity Ratio: 0.17, underscoring low leverage and financial stability.
- Net Margin: 4.45%, modest compared to larger peers but clearly on an improving trajectory.
This combination of revenue growth, expanding margins, and low debt underscores the company’s ability to scale sustainably.
The company’s asset-light model and tech-enabled operations help maintain operational efficiency while scaling globally.
Investment Highlights
- Global Reach – With a presence across five continents and 700+ locations, Om Freight enjoys significant geographical diversification, mitigating region-specific risks.
- Tech-Driven Logistics – The company leverages real-time shipment tracking, paperless systems, and digital documentation, enhancing transparency and operational efficiency.
- Anchor Investor Backing – The IPO has attracted marquee investors including Craft Emerging Market Fund, Rajasthan Global Securities, and Abundantia Capital, lending confidence to retail investors.
- Use of Proceeds – Approximately ₹17.15 crore will be allocated to acquiring new commercial vehicles and equipment, supporting the expansion of fleet capacity. The remainder will go toward general corporate purposes, providing flexibility for operational requirements.
- Asset-Light Model – The business model focuses on leveraging partnerships and networks rather than heavy capital expenditure, ensuring scalability with controlled costs.
Use of Proceeds:
₹17.15 crore for acquiring commercial vehicles and equipment
Remaining for general corporate purposes
Sectoral Outlook
India’s logistics industry is undergoing rapid transformation, driven by rising global trade, e-commerce growth, and government infrastructure push. With the implementation of Gati Shakti, National Logistics Policy, and digitization initiatives, the sector is poised for structural growth.
Companies like Om Freight, with a tech-enabled and asset-light model, are better positioned to benefit from these macro trends compared to traditional players burdened with high fixed costs.
Risk to Consider:
Despite its strengths, investors should be mindful of the following risks:
Thin Margins – At a net margin of 4.45%, Om Freight lags behind larger, more established logistics players. Sustained profitability improvement will be crucial for long-term valuation.
Market Volatility – The logistics sector is closely tied to global trade cycles, freight rate fluctuations, and working capital challenges, which may impact earnings stability.
Valuation Sensitivity – With the Grey Market Premium (GMP) at ₹11 (approx. 8.15%), short-term listing gains appear modest. Long-term performance will depend on execution and sector dynamics.
Conclusion
The Om Freight Forwarders IPO offers investors an opportunity to gain exposure to India’s fast-evolving logistics sector, a backbone of global trade and supply chain management. With 700+ locations, low debt, technology-led operations, and strong anchor investor participation, the company presents a balanced investment case.
That said, the modest margins and limited GMP suggest that short-term returns may not be extraordinary. However, for investors with a medium to long-term horizon, Om Freight’s strategic expansion, improving profitability, and global presence could unlock significant value.
For those bullish on infrastructure, global trade, and supply chain digitization, Om Freight Forwarders stands out as a solid candidate for portfolio diversification and a potential long-term growth story.
