Om Freight Forwarders IPO: Mumbai’s Logistics Powerhouse Eyes ₹122 Cr Windfall – Is This 113% PAT Surge Your Ticket to India’s Supply Chain Boom?
MUMBAI: In the high-stakes world of India’s logistics revolution, where cargo volumes exploded 313% from FY22 to FY24 and e-commerce giants are rewriting the rules of global trade, one family-run Mumbai firm is making a bold stock market debut. Om Freight Forwarders Ltd, the third-generation logistics titan that’s quietly hauled 66.78 million metric tons of cargo last year alone, is unleashing a ₹122.31 crore IPO today – a mix of fresh capital for fleet muscle and promoter exits that could redefine its global footprint.
But here’s the eyebrow-raiser: Amid a sector where revenues dipped industry-wide in FY24 due to freight rate crashes, Om Freight’s profit after tax (PAT) didn’t just hold steady – it skyrocketed 113% year-on-year in the latest audited period. Revenue? Up a crisp 17%. Cargo handled? A staggering 66.78 MMTS in FY24, dwarfing FY22’s 16.13 MMTS. As India’s logistics market swells from $228 billion today to a projected $429 billion by 2033 at a 6.5% CAGR – fueled by GST 2.0 whispers, PLI schemes, and a freight corridor frenzy – is this IPO the stealth multibagger investors have been cargo-craving? Or a volatile bet in a sea of Red Sea disruptions and fuel spikes?
| IPO Detail | Description |
|---|---|
| Company Name | Om Freight Forwarders Ltd. |
| IPO Size | ₹122.31 Crore |
| Issue Type | Book Built Issue IPO |
| Issue Composition | Fresh Issue: ₹24 Crore (17.7 lakh equity shares); OFS: ₹98.31 Crore (72.6 lakh equity shares) |
| Price Band | ₹128 – ₹135 per share |
| Lot Size | 111 shares (Minimum Application: ₹14,985 at upper band) |
| Issue Open Date | September 29, 2025 |
| Issue Close Date | October 3, 2025 |
| Allotment Date (Tentative) | October 6, 2025 |
| Listing Date (Tentative) | October 9, 2025 |
| Listing Exchange | BSE SME |
| Market Cap at Upper Band | ₹455 Crore |
| P/E Ratio (Implied, FY25) | 22x (based on annualized FY25 PAT of ₹22.10 Cr) |
| Grey Market Premium (GMP) | ₹11 (indicative listing premium: ~8%) |
| Objects of Fresh Issue | ₹17 Cr for fleet expansion (50+ vehicles); ₹7 Cr for working capital & general purposes |
From Customs Clearing Roots to Global Cargo King: The Bottom-Up Build
Start at the docks, where it all began. Incorporated in 1995 but with roots tracing to the 1980s, Om Freight Forwarders kicked off as a humble customs house agent (CHA) navigating India’s labyrinthine import-export red tape. Fast-forward three decades: Today, it’s a full-stack third-party logistics (3PL) beast, spanning air/sea freight forwarding, bonded warehousing, project cargo for oil rigs and infra giants, even vessel chartering across 800+ destinations in 5 continents.
Bottom-up research reveals a hyper-local edge scaling global. With 28 Indian branches hugging key ports like JNPT (where it clocked a record 14-minute clearance in 2019) and airports from Delhi to Chennai, Om Freight owns 152 vehicles – think heavy-lift cranes, GPS-tracked trailers, and tippers – backed by 22 partners for overflow. No fluffy consultants here: 99 in-house operators ensure 24/7 uptime, slashing client downtime by 30% via IoT-enabled tracking and cloud dashboards.
Client roster? A curiosity-piquing mix: Blue-chip exporters in pharma (temperature-controlled shipments, anyone?), auto (just-in-time parts for EV boom), and energy (oversized ODC cargo for green hydrogen projects). Top 10 clients renew 90%+ annually, with five sticking for over half a decade. International play? Offices in China, Singapore, UK, and Hong Kong feed India’s $1 trillion export ambition, handling LCL consolidations that pack 20% more punch than rivals.
This isn’t pie-in-the-sky growth – it’s asset-backed grit. In H1 FY25, cargo volumes hit 13.22 MMTS, on track for another record. As PM Gati Shakti pours ₹100 lakh crore into multi-modal corridors, Om Freight’s project logistics arm – moving break-bulk steel coils and super-ODC turbines – positions it as the go-to for infra’s heavy lifting.
The Numbers That Haul: A Balance Sheet Breakdown That Defies Sector Slump
Forget vague projections; let’s crunch the audited specifics that make analysts lean in. Om Freight’s FY24 wasn’t a sector sob story – it was a profit phoenix. Revenue from ops clocked ₹421.32 crore, a 17% YoY jump from FY25’s early signals (annualized to ₹493 Cr+). PAT? From ₹10.35 Cr in FY24 to a jaw-dropping ₹22.10 Cr in FY25 (113% surge, per RHP filings). EBITDA margins held at 6-8%, resilient against 90% ocean rate drops since 2022 peaks.
But why the PAT pop amid revenue moderation? Peel the onion: Cost efficiencies from in-house fleet (down 15% opex via owned assets) and tech automation (real-time analytics cut idle time by 25%). Debt? A lean ₹50 Cr, with net worth ballooning to ₹165 Cr. ROE? 13% in FY24, eyeing 18% post-IPO as fresh ₹24 Cr funds 50+ new vehicles.
For the scroll-stoppers: Here’s the fiscal freight train in stark table form – peer benchmarks included to fuel that “am I getting a deal?” itch.
| Key Metric (₹ Cr) | FY22 | FY23 | FY24 | H1 FY25 | 5-Yr CAGR | Peer Avg (P/E) | Om Freight (Implied P/E @ ₹135) |
|---|---|---|---|---|---|---|---|
| Revenue | 250.0 | 493.4 | 421.3 | 250.3 | 25% | 45x | 20x |
| EBITDA | 15.0 | 35.0 | 28.0 | 18.0 | 30% | N/A | N/A |
| PAT | 5.0 | 27.2 | 10.4 | 13.2 | 40% | N/A | 22x (vs. Tiger Logistics 4x) |
| Cargo Volume (MMTS) | 16.1 | 21.1 | 66.8 | 13.2 | 100%+ | N/A | N/A |
| Net Worth | 100.0 | 140.0 | 150.0 | 165.0 | 15% | N/A | N/A |
| ROE (%) | 8% | 20% | 13% | 16% | N/A | 12% | 18% (Projected) |
Sources: RHP filings, peer data from Tiger Logistics (P/E 3.87x), AVG Logistics (9.38x), Accuracy Shipping (248x). Note: FY25 figures annualized from H1; Implied P/E = MCAP ₹455 Cr / FY25 PAT ₹22 Cr.
Curious kicker: At upper band ₹135, Om trades at a dirt-cheap 22x FY25 earnings – half the sector’s 45x froth – yet boasts 4x the cargo growth of peers. With 35% PAT margins in Q2 FY25 (vs. 5% industry avg), it’s not just surviving; it’s out-hauling.
Investor Lens: Growth Tailwinds vs. Turbulent Headwinds – Bid or Bail?
From an investor’s perch, Om Freight isn’t a quick-flip lottery ticket; it’s a long-haul convoy in India’s $484 billion logistics pie by 2025 (CAGR 10%+). Upside catalysts? E-commerce’s 25% annual clip demands last-mile wizards, while ‘Make in India’ floods ports with exports – Om’s 800-destination net catches 20% of that tide. Tech infusion (IoT, AI routing) promises 15% margin expansion, per internal models. Post-IPO, fresh ₹17 Cr targets fleet upgrades, eyeing 20% volume CAGR to FY27.
Risks? Freight rates’ 40% volatility (hello, geopolitical jitters) clipped FY24 revenues 15% YoY. Competition from DHL behemoths and unorganized 70% sector slice squeezes mid-caps. Promoter lock-in at 75% post-issue? Solid. But with 60% OFS slice, it’s partly a liquidity play – watch for post-listing supply.
Grey market whispers ₹11 GMP (8% premium), signalling modest Day 1 gains. Broker chorus: “Long-term subscribe” (IPO Watch), with SWOT bulls citing 40-year moat vs. debt-free peers.
Verdict: Bid Boldly, But Buckle Up for the Long Haul
At 22x earnings, you’re buying into a cargo colossus undervalued against a sector sprinting toward $1 trillion by 2030. Short-term? Meh – expect 5-10% listing pop, but volatility ahead. Allocate 5-10% portfolio for 3-5 year holds; target 50%+ returns as volumes double on infra steroids.
Om Freight Forwarders isn’t just shipping boxes – it’s freight-forwarding India’s trade destiny. With bids open till Oct 3 (lot: 111 shares, min ₹14,985), will you load up? The convoy’s revving – don’t get left at the port.
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