Om Freight Forwarders Files IPO Draft Papers with SEBI

Om Freight Forwarders Ltd., a Mumbai-based logistics and freight company, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO). The company was established in 1995 and provides end-to-end logistics services including freight forwarding, customs clearance, warehousing, and distribution.

IPO Details

The IPO will include both a fresh issue of shares and an offer-for-sale (OFS). The fresh issue aims to raise ₹25 crore. The OFS component includes 72.5 lakh equity shares with a face value of ₹10 each. The overall issue size has not been disclosed in the DRHP.

Promoters Rahul Jagannath Joshi, Harmesh Rahul Joshi, and Kamesh Rahul Joshi will be offloading their shares through the OFS. Specifically, Rahul Jagannath Joshi will sell 39.8 lakh shares, Harmesh Rahul Joshi will sell 25.3 lakh shares, and Kamesh Rahul Joshi will sell 7.25 lakh shares.

Use of Proceeds

From the ₹25 crore expected through the fresh issue, ₹16.64 crore will be used for capital expenditure. This includes the acquisition of commercial vehicles and heavy equipment. The remaining funds will go toward general corporate purposes.

Allotment Structure

The IPO will be offered through the book-building process. According to the DRHP, 50% of the issue will be allocated to qualified institutional buyers (QIBs), 15% to non-institutional investors, and 35% to retail individual investors.

Smart Horizon Capital Advisors Pvt. Ltd. is acting as the book-running lead manager for the issue. Bigshare Services Pvt. Ltd. has been appointed as the registrar. The shares are proposed to be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

Financials

In FY24, the company reported a revenue of ₹410.5 crore and a net profit of ₹10.35 crore. For the July-September quarter of FY25, revenue stood at ₹250.29 crore and net profit at ₹13.22 crore. The company’s net worth as of September 30, 2024, was ₹164.72 crore.

Om Freight has operations in China, Hong Kong, Singapore, and the UK, and serves over 700 destinations globally.

Conclusion

The IPO process will move forward following SEBI’s observations and approvals. Final details regarding pricing, issue dates, and investor bidding will be released in subsequent filings.

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