Sunsky Logistics Makes Modest Debut with 8.70% Premium, Lists at ₹50.00 Against Weak Subscription

Sunsky Logistics Limited, the integrated logistics solution provider offering multimodal transportation services through rail, air, road, and sea with MTO license and FMC ocean freight certification, made a modest debut on BSE SME on October 8, 2025. After closing its IPO bidding between September 30-October 3, 2025, the company commenced trading with a 10.87% premium opening at ₹51 but moderated to ₹50 with gains of 8.70%.

Sunsky Logistics Listing Details

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Sunsky Logistics Limited launched its IPO at ₹46 per share with a minimum investment of 6,000 shares costing ₹2,76,000. The IPO received weak response with a subscription of just 1.46 times - individual investors at 0.93 times and NII at 2.01 times.

First-Day Trading Performance Outlook

Listing Price: Sunsky Logistics share price opened at ₹51 representing a premium of 10.87% from the issue price of ₹46, but moderated to ₹50, delivering modest gains of 8.70% for investors reflecting cautious market sentiment towards the logistics sector.

Growth Drivers and Challenges

Growth Drivers:

• Comprehensive Service Portfolio: Integrated logistics solutions including ocean freight forwarding, air freight forwarding, project cargo handling, custom clearance, door-to-door delivery, and inland transportation across U.S., Uganda, UAE, Oman, Guatemala, Australia, and Iraq.
• Strong Certifications and Memberships: MTO license for multimodal transport, FMC Ocean Transportation Intermediary certification, memberships in World Shipping Alliance and Bling Logistics Network ensuring global reach and operational credibility.
• Exceptional Profitability Metrics: Outstanding ROE of 79.42%, impressive ROCE of 59.34%, moderate debt-to-equity ratio of 0.45, healthy PAT margin of 11.74%, and solid EBITDA margin of 16.81%.

Challenges:

• Revenue Inconsistency: Top line posted de-growth in FY24 declining from ₹19.38 crore in FY23 to ₹14.81 crore in FY24 before recovering to ₹22.27 crore in FY25 raising concerns about business stability.
• Greedy Valuation and Tiny Scale: Alarming price-to-book value of 8.91x appearing greedily priced, extremely small operational scale with just 9 employees, tiny paid-up equity indicating longer gestation for migration representing "High Risk/Low Return" proposition.

Utilisation of IPO Proceeds

• Fleet Expansion: ₹6.42 crore for purchase of flatbed trailers enhancing inland transportation capabilities and operational efficiency.
• Debt Reduction and Working Capital: ₹3.50 crore for debt repayment improving financial leverage from 0.45x debt-to-equity ratio, and ₹2.75 crore for working capital requirements.
• General Corporate Purpose: ₹2.52 crore supporting business operations and strategic initiatives for sustained growth in competitive logistics segment.

Financial Performance of Sunsky Logistics

• Revenue: ₹22.27 crore for FY25, showing strong recovery of 50% from ₹14.81 crore in FY24, though revenue had declined from ₹19.38 crore in FY23 indicating inconsistency concerns.
• Net Profit: ₹2.59 crore in FY25, representing exceptional growth of 107% from ₹1.25 crore in FY24, indicating substantial operational leverage and margin expansion despite revenue inconsistency.
• Financial Metrics: Outstanding ROE of 79.42%, impressive ROCE of 59.34%, moderate debt-to-equity ratio of 0.45, healthy PAT margin of 11.74%, solid EBITDA margin of 16.81%, alarming price-to-book value of 8.91x, and estimated market capitalisation of ₹63.42 crore.