Om Freight Forwarders Makes Weak Debut with 35.85% Discount, Lists at ₹86.60 Against Moderate Subscription

Om Freight Forwarders Limited, the third-generation logistics company offering international freight forwarding, customs clearance, vessel agency, and warehousing services across 700+ locations in five continents, made a disappointing debut on BSE and NSE on October 8, 2025. After closing its IPO bidding between September 29-October 3, 2025, the company commenced trading with a 38.89% discount opening at ₹82.50 and rose to ₹86.60 with losses of 35.85%.

Om Freight Forwarders Listing Details

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Om Freight Forwarders Limited launched its IPO at ₹135 per share with a minimum investment of 111 shares costing ₹14,985. The IPO received moderate response with a subscription of 3.88 times - retail investors at moderate 2.77 times, NII at 7.39 times, and QIB at 3.97 times, though employee category received 0.57 times subscription.

First-Day Trading Performance Outlook

Listing Price: Om Freight Forwarders share price opened at ₹82.50 representing a discount of 38.89% from the issue price of ₹135, and rose to ₹86.60, delivering losses of 35.85% for investors reflecting negative market sentiment towards the logistics sector.

Growth Drivers and Challenges

Growth Drivers:

• Comprehensive Service Portfolio: End-to-end logistics solutions including customs clearance, freight forwarding, project and charter services, domestic transportation, warehousing, material handling, bonded trucking, trans-shipping, and cross trade across air, sea, and road modes.
• Extensive Global Reach: ISO certified with memberships in IATA, FIATA, WCA, GLPN, FFI, and MTO, operating 28 branches across India, 800+ destinations internationally through global partnerships, managing 66.86 MMTS cargo in FY25.
• Owned Fleet and Technology: Fleet of 135 commercial vehicles and equipment including cranes, forklifts, trailers, payloaders, vessels with GPS tracking, real-time monitoring, paper-free documentation, and 22 logistic partners.

Challenges:

• Revenue Inconsistency: Top line posted inconsistency with revenue declining from ₹493.35 crore in FY23 to ₹421.32 crore in FY24 before recovering to ₹494.05 crore in FY25, while PAT declined from ₹27.16 crore to ₹10.35 crore before recovering.
• Aggressive Pricing and Low Margins: Post-issue P/E of 20.67x appearing aggressively priced, modest PAT margin of 4.49% and EBITDA margin of 7.69% indicating minimal pricing power in highly competitive and fragmented 3PL logistics segment.

Utilisation of IPO Proceeds

• Fleet Expansion: ₹17.15 crore for capital expenditure towards acquisition of commercial vehicles and heavy equipment expanding owned fleet from 135 vehicles and enhancing operational capabilities.
• General Corporate Purposes: ₹4.08 crore supporting business operations and strategic initiatives for sustained growth in competitive logistics solutions segment.

Financial Performance of Om Freight Forwarders

• Revenue: ₹494.05 crore for FY25, showing growth of 17% from ₹421.32 crore in FY24, though revenue inconsistency across periods raises sustainability concerns.
• Net Profit: ₹21.99 crore in FY25, representing exceptional growth of 113% from ₹10.35 crore in FY24, though PAT had declined significantly from ₹27.16 crore in FY23 indicating volatility.
• Financial Metrics: Moderate ROE of 13.53%, moderate ROCE of 15.80%, low debt-to-equity ratio of 0.17, modest PAT margin of 4.49%, moderate EBITDA margin of 7.69%, and estimated market capitalisation of ₹291.63 crore.