Om Freight Forwarders IPO Soars to 3.6X Subscription on Final Bidding Day

Issue Size & Price Band: Om Freight’s IPO is ₹122.31 Cr (₹24.44 Cr fresh + ₹97.88 Cr offer-for-sale) ^[1] ^[2]. 50% is reserved for QIBs, 35% retail, 15% NIIs ^[3]. The price band is ₹128–₹135 (lot of 111 shares, ₹14,985 min at upper band) ^[4] ^[5].
Subscription: By final hours (Oct 3), the IPO was ~3.58× subscribed overall ^[6] ^[7]. NIIs led demand (~6.7× subscription) ^[8], QIBs ~3.97× ^[9] and retail ~2.49× ^[10]. This built on Day 1 (1.39×) and Day 2 (2.56×) momentum ^[11] ^[12].
Grey Market: Before listing, grey-market premiums (GMP) were modestly positive. Shares traded ~8.2% above ₹135 (≈₹146) pre-launch ^[13]. By Day 3, analysts quoted GMP ≈2.2% (implying ~₹138 listing) ^[14].
Listing Plans: Bidding runs Sep 29–Oct 3; allotment on Oct 6; listing on BSE/NSE Oct 8 ^[15] ^[16].
Use of Proceeds: ~₹17.1 Cr of fresh funds will buy vehicles/heavy equipment, rest for general corporate needs ^[17] ^[18].
Business Profile: Om Freight (1995-founded, Mumbai) is a third-generation 3PL logistics firm. It has 28 domestic branches and a global network across ~700–800 destinations ^[19] ^[20]. In FY25 it handled 66.86 million tonnes of cargo ^[21].
Anchor Investment: Three anchor funds (Craft Emerging Market Fund, Rajasthan Global, Abundantia Capital) bought 11.77 L shares at ₹135 each (≈₹15.9 Cr) ^[22].
Expert View: INVAsset PMS’s Harshal Dasani notes Om Freight has a “solid base” with diversified services and low leverage ^[23], but cautions its profit margins are slimmer than larger peers and it remains sensitive to freight-rate swings and working-capital cycles ^[24]. He emphasizes that long-term growth hinges on margin expansion via technology/automation to achieve double-digit returns ^[25].

IPO Details and Timeline

Om Freight Forwarders’ IPO aims to raise ₹122.31 Cr through a book-built offer ^[26] ^[27]. This comprises a fresh issue of 18.10 lakh shares (₹24.44 Cr) and an OFS of 72.50 lakh shares (₹97.88 Cr) ^[28] ^[29]. The price band is ₹128–135, with a lot size of 111 shares (₹14,985 min at ₹135) ^[30] ^[31]. The issue opened on Sep 29 and closed Oct 3 ^[32] ^[33]. Shareholding quotas are 50% QIB, 35% retail, 15% NII ^[34]. Smart Horizon Capital was book-running lead manager and Bigshare the registrar ^[35].

Promoter-shareholders (the Joshi family) sold via OFS: Rahul J. Joshi (39.875 L shares), Harmesh R. Joshi (25.375 L), and Kamesh R. Joshi (7.25 L) ^[36]. Notably, on Sep 26 (pre-IPO), Om Freight allotted 11.77 L shares to anchor investors at ₹135, raising ~₹15.9 Cr ^[37]. The IPO proceeds (fresh issue) will fund capital expenditures – mainly commercial vehicles and heavy equipment (~₹17.1 Cr) – with the balance for general corporate purposes ^[38] ^[39].

According to filings and reports, the allotment is expected Oct 6 and the shares will list on NSE/BSE Oct 8 ^[40] ^[41]. Before opening, Business Standard noted the unofficial grey market price at ₹146 (≈+8.15% over ₹135) ^[42], indicating early investor appetite.

Subscription & Investor Response

Investor demand for the IPO was strong throughout. By Oct 1 (end of Day 2), the issue was ~2.56× subscribed ^[43]. The momentum carried into the final day: Groww reported 2.96× by mid-morning Oct 3 ^[44] ^[45]. Moneycontrol later reported bids of 2.83 Cr shares vs 0.79 Cr on offer (~3.58×) by 3:09 pm on Oct 3 ^[46].

Non-Institutional Investors drove the surge: NIIs subscribed ~6.75× their portion, with high-value bids 6.49× (mostly affluent individuals) ^[47]. Even mid-tier NIIs (bids ₹2–10 L) were 7.28×. QIBs took ~3.97× (foreign institutions ~3.4L shares, others ~3.8L) ^[48]. Retail participation also improved late, reaching ~2.49× (over 83.6L of 109L bids at cut-off) ^[49]. Employees subscribed just ~0.52×. Overall, data showed broad-based interest, especially from HNIs and institutions. As the IPO closed, ETMarkets noted total bids of ~2.02 Cr against 79.16 L shares (2.56×) earlier on Oct 3 ^[50], reflecting “solid interest from investors across the board.”

The surge prompted headlines: Moneycontrol’s title highlighted “strong NII and retail participation” on the final day ^[51]. Similarly, Business Standard and ET remarked on the robust demand and oversubscription. A Bloomberg-style analysis might call this a good sign, since large institutional backing often supports post-listing stability.

Grey Market and Listing Sentiment

Grey-market indicators showed moderate optimism. Unofficial grey market trackers and analysts reported GMPs in the high single digits during the IPO week. Mint reported GMP ~₹7 (≈5% premium over ₹135) on Oct 2 ^[52]. Business Standard had noted ~₹11 premium (8%) pre-open ^[53]. By the final day, ETMarkets cited analysts saying GMP was ~2.2% (implying ~₹3 per share potential gain) ^[54]. In sum, while the grey market suggested some listing gain, it was not exceptionally high compared to hotter issues – possibly reflecting a cautious sentiment in an IPO-cluttered market ^[55].

Investors and experts typically treat GMP cautiously (it’s unofficial). The moderation implies a belief that the IPO is fairly valued. As ETMarkets noted, the “moderate GMP” signals measured optimism rather than a bubble. The stock’s listing day performance will ultimately prove the sentiment.

Company & Industry Background

Om Freight Forwarders is a Mumbai-based third-party logistics (3PL) firm (founded 1995). It offers integrated end-to-end supply chain services: international air/sea freight forwarding, customs clearance, chartered shipping (vessel agency), multi-modal transportation (road, rail), warehousing, distribution and project logistics ^[56] ^[57]. It emphasizes customized handling of heavy and specialized cargo (including climate-sensitive goods) ^[58] ^[59].

Om Freight has a wide network: 28 domestic branches and tie-ups reaching 800+ destinations worldwide ^[60] ^[61]. The promoters highlight Om Freight’s decades of experience (“four decades of expertise” ^[62]) and a large specialized fleet (≈135 vehicles including trailers, cranes, etc. ^[63]). In FY25 it handled ~66.86 million tonnes of cargo ^[64] – a significant volume that showcases its role in bulk and container transport. Key customers span industries (mining, steel, oil & gas, FMCG, infrastructure, etc.) ^[65] ^[66].

Industry analysts note the broader sector’s growth tailwinds. India’s freight and logistics market is booming – estimated at ~$349.4 b in 2025 and projected to reach ~$545.6 b by 2030 (CAGR ~9.3%) ^[67]. Logistics accounts for ~13-14% of India’s GDP, and government initiatives (like Gati Shakti, new ports/airports) promise further expansion. Om Freight, with its niche in heavy cargo and project logistics, aims to capitalize on infrastructure and manufacturing growth. Its ISO certifications (9001, 14001, 45001) signal operational quality ^[68].

However, competition is stiff. Large integrated players (e.g. Blue Dart, Delhivery, Mahindra Logistics) and global giants operate in adjacent spaces. Om Freight’s edge is its end-to-end one-stop service and decades of relationships in heavy/bulk segments ^[69]. The company stresses its tech focus (paperless docs, GPS tracking, etc.) to improve efficiency. Ultimately, its IPO appeal depends on sustaining margins and growth in a competitive, asset-heavy industry.

Expert Views & Analysis

Industry analysts have mixed takes. INVAsset PMS’s Harshal Dasani highlighted that Om Freight’s strengths include “extensive operational history” and diversified services (air/sea freight, customs, warehousing) ^[70]. He praises its low financial leverage, which provides room to grow. On the flip side, Dasani cautioned that Om Freight’s profitability is “limited” versus larger logistics peers, and earnings can swing with volatile freight rates and working capital demands ^[71].

Dasani also pointed out that valuation and market conditions matter: with a significant OFS (72.5 L shares) and high issue price, short-term listing gains may be modest. The real test will be improving unit economics. He notes that “long-term potential depends on Om Freight’s ability to enhance margins through technological advancements, automation, and value-added services while increasing return ratios to double digits” ^[72]. In other words, investors will watch if Om Freight can boost efficiencies and pricing power in coming years.

ETMarkets commentary echoed cautious optimism. Ritesh Presswala (ET) observed that institutional and HNI interest (especially NIIs 5.13×, QIBs 3.95× so far) is a “positive indicator for the stock’s listing performance” ^[73]. But he likewise noted the moderate GMP (2.2%) as a sign of “measured investor optimism” in a crowded IPO market ^[74].

No analyst target or buy/sell ratings were cited in these reports (common for fresh IPOs), but the consensus from newswire sources is that Om Freight’s strong order book and industry fundamentals are positives, while its relatively small scale and narrow margins versus large 3PLs are risks.

Outlook

Given the heavy subscription, Om Freight’s IPO appears well-received. Strong NII and institutional bidding suggests confidence in the logistics story. If the listing prices around or above ₹135 (as GMP hinted), early investors will see quick gains. Over the long run, success hinges on execution: expanding volumes efficiently and staying profitable in a competitive market.

Potential investors should weigh the growth prospects (India’s logistics boom, Om Freight’s niche expertise) against risks (low credit/leverage and exposure to freight cycles ^[75]). The use of proceeds (vehicle acquisitions) aims to grow capacity, which could boost revenue. However, replacing aging assets and integrating tech will require discipline.

As of writing, the allotment is Oct 6 and shares will debut Oct 8. Traders will watch the opening price as a barometer. Given the 3–5% grey market premium and heavy bid amounts, an initial premium listing seems plausible. The IPO is now closed, and all eyes turn to the stock’s debut and subsequent performance.

Sources: News reports and filings (Groww, Moneycontrol, ET Markets, Business Standard, Mint, ET Now, etc.) ^[76] ^[77] ^[78] ^[79] ^[80] ^[81] (see citations). These provide detailed IPO metrics, subscription data, expert commentary, and company background. All figures and quotes above are drawn from these published sources.