GConnect Logitech and Supply Chain IPO: Review, Date & GMP

Gconnect Logitech and Supply Chain Limited IPO  - Complete Overview

Gconnect Logitech and Supply Chain Limited, established in 2022, specializes in surface logistics services, viz. goods transport services. 

The company offers transportation solutions to other logistics companies as well as direct customers. 

Their services encompass bulk load, Full Truck Load (FTL) service, and dedicated load offerings. 

Operating under an asset-light model, the company collaborates with third-party providers to access necessary assets such as vehicles for its operations. 

As of September 30, 2023, the company serves approximately 24 customers, with over 8 clients having been associated with them for more than 4 years. 

By October 30, 2023, Gconnect Logitech had partnered with 4 fleet management firms and possessed 23 vehicles of various sizes to fulfill customer requirements. 

As of March 2024, the company employs 6 individuals across various departments.

Gconnect Logitech and Supply Chain Limited IPO Overview

Gconnect Logitech and Supply Chain Limited IPO date is slated to be open for subscription from March 26, 2024, to March 28, 2024. This NSE SME IPO follows a Fixed Price Issue IPO.

Gconnect Logitech and Supply Chain Limited IPO price is fixed at Rs.40 per share. 

The total issue size of this IPO amounts to Rs.5.60 Cr. The company has allocated shares 50% to retail investors and 50% to other investors.

 

 

Company Financial

Compared to 30 Sep 2023, Gconnect Logitech and Supply Chain Limited has seen growth in total assets, net worth, and total revenue. The profit after tax has also increased.

Amount in Lakhs

Period	30 Sep 2023	31 Mar 2023
Total Assets	423.25	82.46
Total Revenue	212.57	101.03
PAT	22.83	10.86
Net worth	398.15	77.51
Reserve & Surplus	166.29	60.10

 

The Objective of the Issue

The company intends to utilize the net proceeds from the issue for the following purposes:

1. Purchase of vehicles and body building.

2. Financing the development of the website and designing of the app.

3. General corporate purposes.

 

Peers of Gconnect Logitech and Supply Chain Limited IPO

Name of the Company	Face Value (Rs)	EPS (Rs)	P/E Ratio
Gconnect Logitech and Supply Chain Limited	10	26.64	-
Ritco Logistics Limited	10	9.94	23.03
VRL Logistics Limited	10	18.80	29.01
Shreeji Translogistics Limited	2	2.11	14.10

 

 

 

Evaluation

The IPO is priced at Rs. 40 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 26.64 from the last year, the resulting P/E ratio is 1.5x.

• Taking into account the weighted EPS of Rs 26.64 for the last three years, the P/E ratio amounts to 1.5x.

Comparative Analysis with Listed Peers

• The industry's average P/E is 22.05x.

As a result, the IPO price range, with a P/E ratio ranging from 1.5x to 1.5x, seems exorbitantly priced to the industry average of 22.05x.

IPO's Strengths 

• Experienced promoters and management team

• Well-defined organizational structure

• Longstanding and diverse customer base

• Existing supplier relationships

• Asset-light business model

IPO weaknesses 

• The company was specifically formed to acquire the business of "Prithvi Enterprises," resulting in limited operating history.

• Any disruptions to the logistics and transportation facilities could significantly impact the company's operations.

• The company relies on third-party carriers and inland transportation companies for transporting client cargo.

• Operating in a highly competitive industry, the company faces intense competition.

• Both the company and the sole proprietorship have experienced negative cash flow.

• The company does not verify the contents of transported parcels, exposing it to risks associated with goods transportation.

• Certain approvals, licenses, registrations, and permits are required for business operations, and failure to obtain or renew them promptly may adversely affect operations.
  
  

 

 

IPO GMP Today 

The latest GMP of Gconnect Logitech and Supply Chain Limited is Rs.9/-.

 

Gconnect Logitech and Supply Chain Limited IPO timetable (Tentative)

Gconnect Logitech and Supply Chain Limited IPO is scheduled from March 26 to March 28, 2024, with allotment on April 1, refund initiation on April 2, and listing on April 3, 2024.

Events	Date
IPO Opening Date	March 26, 2024
IPO Closing Date	March 28, 2024
IPO Allotment Date	April 1, 2024
Refund initiation	April 2, 2024
IPO Listing Date	April 3, 2024

Gconnect Logitech and Supply Chain Limited IPO Details 

Gconnect Logitech and Supply Chain Limited IPO, with a face value of Rs.10 per share, opens on March 26 and closes on March 28, 2024, offering 1,401,000 shares at Rs.40 per share, with a lot size of 3000 shares, aiming to raise Rs.5.60 Cr, and will be listed on NSE SME.

IPO opening & closing date	March 26, 2024 to March 28, 2024
Face value	₹10 per share
Issue Price	₹40 per share
Lot Size	3000 Shares
Price of 1 lot	₹120,000
Issue Size	1,401,000 shares (aggregating up to ₹5.60 Cr)
Fresh issue	1,401,000 shares (aggregating up to ₹5.60 Cr)
Listing at	BSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Kfin Technologies Limited

 

 

Gconnect Logitech and Supply Chain Limited IPO Lot Details 

For Gconnect Logitech and Supply Chain Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (3000 shares) at Rs.120,000 while for HNI investors, the minimum investment is 2 lots (4000 shares) at Rs.240,000.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	1 lot
Minimum Lot Investment (HNI)	2 lot

 

Gconnect Logitech and Supply Chain Limited IPO Reservation

Other Investors share Portion	50%
Retail Investors share Portion	50%

Promoters and Management of Gconnect Logitech and Supply Chain Limited

• Mr. Jigar Vinodbhai Sheth 

• Mr. Vinod Venilal Sheth.

Pre-issue Promoter shareholding	76.76%
Post-issue Promoter shareholding	47.85%

 

Gconnect Logitech and Supply Chain Limited IPO Lead Managers

• Fedex Securities Pvt Ltd 
  
  

Dividend Policy

The company has not distributed any dividends on its equity shares in the past financial years. Future dividend payments will be depend upon the financial performance of the company.

 

 

Conclusion

The company operates in a highly competitive and fragmented market, with limited operating history. The sudden rise in its profit may appear to be overstated for the IPO issue. Seasoned investors might choose to apply for the issue after conducting thorough analysis.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

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