Oneclick Logistics India IPO GMP (Grey Market Premium)

The ₹9.91 crore IPO of Oneclick Logistics India Ltd  comprises entirely of a fresh issue with no offer for sale (OFS) component in the IPO from promoters and early shareholders. It is a fixed price issue and the fixed price of the IPO has been set at ₹99 per share. The fresh issue portion of the IPO entails the issue of 10.01 lakh shares which at the fixed IPO price of ₹99 per share is worth ₹9.91 crore. Since there is no OFS component in the IPO, the fresh issue size of ₹9.91 crore is also the size of the overall IPO.

How to apply for the Oneclick Logistics India Ltd  IPO

The minimum lot size for the IPO investment will be 1,200 shares. Thus, retail investors can invest a minimum of ₹1,18,800 (1,200 x ₹99 per share) in the IPO. That is also the maximum that the retail investors can invest in the IPO. HNI / NII investors can invest a minimum of 2 lots comprising of 2,400 shares and having a minimum lot value of ₹2,37,600. There is no upper limit on what the QIBs as well as what the HNI / NII investors can apply for. The table below captures the break-up of lot sizes for different categories.

Out of the total shares on offer, the company has allocated 52,800 shares for the market maker for providing liquidity post listing and reducing basis risk. The net offer (net of market maker allocation) will be distributed between the retail investors and the HNI / NII investors. The table below captures the gist of the IPO allocation to various categories.

Like in every SME IPO, the IPO of Oneclick Logistics India Ltd  also has a market maker. The Market maker typically provides buy and sell quotes post listing to ensure liquidity and low basis risk in the stock. In this case, the makers will be SS Corporate Securities Ltd, who will act as the market maker for the SME IPO of Oneclick Logistics India Ltd . The company has set aside 52,800 shares for the market maker.

The table below captures the key dates pertaining to the Oneclick Logistics India IPO.

The listing will happen in the NSE-SME segment, which is in contrast to the mainboard, and the IPOs of small and medium enterprises (SMEs) are incubated in NSE-SME segment.

About the GMP pricing for Oneclick Logistics India Ltd  

The grey market price (GMP) trading normally starts about 3-5 days prior to IPO opening and continues till the listing date. In the case of Oneclick Logistics India Ltd , we already have GMP data for the last 2 days, which should give a reasonable picture of the likely listing.

There are 2 factors that impact the GMP. Firstly, the market conditions have a deep impact on the GMP, especially the liquidity conditions in the market. Secondly, the extent of subscription for the IPO has a deep impact on the GMP as it is indicative of investor interest in the stock. GMP can also technically be in negative, which means the stock would list at a discount to the issue price.

There is one small point to remember here. The GMP is not an official price point, just a popular informal price point. However, in most cases, it has been observed to be a good informal gauge of demand and supply for the IPO. Hence it does give a broad idea of how the listing is likely to be and how the post-listing performance of the stock would be.

How has the GMP panned out in last few days

GMP tends to be a good mirror of the real stock story. More than the actual price, it is the GMP trend over time that gives insights about which direction the wind is blowing. Here is a quick GMP summary for Oneclick Logistics India IPO for which the data is available.

In the above case, the GMP trend shows that the grey market premium has opened at around ₹40, but has improved by ₹50. Of course, we have to await for the actual subscription numbers to flow in when the issue opens for subscription on 27th September 2023 and also watch the progress, as that would have a very significant impact on the GMP. In the past, stocks which got oversubscribed in the IPO also saw a very robust positive shift in the grey market pricing. For a start, Oneclick Logistics India Ltd  has shown good traction in the grey market.

If you consider the fixed IPO price of Oneclick Logistics India Ltd  at ₹99, then the likely listing price is being signalled at around ₹139 per share as per the GMP indicator on 26th September 2023. This is dynamic and keeps changing. One data point to track will be the subscription update on the stock as that would chart the GMP course.

The GMP of ₹40 on the fixed IPO price of ₹99 indicates a listing premium of a healthy 40.40% for Oneclick Logistics India Ltd over the listing price. That pre-supposes a listing price of approximately ₹139 per share, when Oneclick Logistics India Ltd  lists on 11th October 2023. Of course, these are approximations, so you must keep a margin of safety. One needs to observe the trend of GMP closely as that gives the best hints on listing status. Look at the time series trend than on numbers.

Brief on Oneclick Logistics India Ltd

Oneclick Logistics India Ltd was incorporated in the year 2017 as an integrated logistics solutions provider. Oneclick Logistics India Ltd offers a single-window solution across the logistics services value chain. The company provides the full range of logistics related services, which include container handling, clearing & forwarding, customs clearance, brake bulk handling, brokerage, recovery of claims pertaining to customs & insurance etc. As a value addition, Oneclick Logistics India Ltd also provides its clients warehousing services, distribution & supply chain management, port and terminal operations, and container freight station operations. It has a global client base that is spread across major trading partners of India like China, Europe, Singapore, and Malaysia. The company is active in the government owned ports as well as in privately owned ports on the East and West coast.

The company has been promoted by Rajan Mote and Mahesh Bhanushali. The promoter holding in the company currently stands at 93.00%. However, post the fresh issue of shares, the promoter equity holding share will get diluted to 67.17%. The fresh issue funds will be used by the company for meeting the incremental working requirements of the company while a small part will also be allocated for general corporate purposes. While Fedex Securities Private Ltd will be the lead manager to the issue, Bigshare Services Private Ltd will be the registrar to the issue. The market maker for the issue is SS Corporate Services Ltd.