IPO closes on 1 Oct'25
Glottis Ltd
Minimum Investment
₹ 14,706 / 114 shares
Our Verdict:
Subscribe
- Glottis Ltd has delivered strong revenue and earnings growth in FY25, supported by stable margins and robust return ratios. The company is a dominant player in the ocean freight segment, with an established global footprint across 125 countries. Its ocean freight volume rose 89% from 59,417 TEUs in FY23 to 112,146 TEUs in FY25.
- On the valuation front, the IPO is reasonably priced at a P/E multiple of 18x.
- While the company’s scale remains smaller compared to established listed peers, the planned use of IPO proceeds for asset expansion and diversification is likely to accelerate its growth trajectory.
- Overall, this IPO offers long-term potential within India’s logistics growth story. While near-term performance may depend on market sentiment, long-term prospects remain attractive, making it a suitable option for investors with a long-term horizon.
About the company
Founded in
18 Apr'22
Managing director
Ramkumar Senthilvel, Kuttappan Manikandan
- Founded as a partnership firm in 2004, Glottis has grown into a fully integrated logistics company with a robust pan-India presence and a significant global footprint. Its comprehensive service portfolio includes Ocean Freight Forwarding, Air Freight Forwarding, Inland Transportation, Warehousing & 3PL and Customs Brokerage, with the majority of its revenue stemming from ocean freight forwarding.
- With 8 branch offices across key transport hubs in India and a global reach spanning 125 countries, Glottis' operations are further supported by its group entities in Singapore, the UAE, and Vietnam. Its expansive network is fortified through partnerships with 256 international freight forwarders, 124 shipping lines and over 638 business partners worldwide.
STRENGTHS
- Exceptional Growth: Revenue and EBITDA nearly doubled in FY25, driven by an increase in TEU volumes in ocean freight. Net profit also surged by 81% in FY25 compared to FY24.
- Stable Margins: Despite expansion, margins have remained consistent. EBITDA margins are around 8%, with net profit margin at approximately 6%.
- Strong Debt Management: The Debt/Equity ratio significantly improved, dropping from 2.66 to 0.22 within two years.
- Robust Return Metrics: Glottis’ return ratios remain strong, although they are moderating as the equity base grows. Its Return on Equity of 56.98% and Return of Capital Employed of 72.58% are significantly higher than those of its listed peers.
- Customer Stickiness: In FY25, 82% of Glottis’ revenue was generated from repeat customers. This demonstrates strong client relationships and predictable revenues, though a high dependence on these customers poses a concentration risk.
RISK FACTORS
- Heavy Dependency on Ocean Freight: Glottis generates majority of its revenue (94.70% in FY25) from the ocean freight (import and export) segment. Its financial stability would be significantly impacted if it fails to secure new contracts, renew existing ones or if contracts are terminated in this segment.
- Client Concentration: A significant portion of revenue is dependent on a small group of clients. In FY25, the top 10 clients accounted for 53% of the total revenue. A loss or reduction in business from any of these key clients could substantially impact the company’s financial performance.
- Competitive and Fragmented Market: The logistics market is highly competitive and fragmented, with many unorganized players still dominating the space. Although Glottis' scale is smaller compared to established peers like Allcargo and TCI, its growth rates and return metrics are superior.
- Lack of Long-Term Contracts: Glottis enters into formal contracts for project cargo customers, typically ranging from 6 to 22 months. As these contracts are generally non-continuous, customers may cancel or modify their orders, which could adversely affect cash flow, revenue and earnings.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 307 crore
Fresh Issue
₹ 160 crore
OFS
₹ 147 crore
Price range
₹ 120 - 129
Lot size
114 shares
Issue Objective
The net proceeds from the fresh issue will be utilized for the following purposes:
- Purchase of commercial vehicles and containers; and
- General corporate purposes.
Dates
Bidding open
29 Sep'25
Bidding close
1 Oct'25
Allotment date
3 Sep'25
Refund date
6 Oct'25
Listing
7 Oct'25
IPO Reservations
Qualified institutional buyers
<30%
Non-institutional investors
>30%
Retail individual investors
>40%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
This document has been issued by Liquide Solutions Private Limited for information purposes only. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and independent advice regarding the appropriateness of investing in any of the funds, securities, other investment or investment strategies that may have been discussed or referred herein and should understand that the views regarding future prospects may or may not be realized. In no event shall Liquide Life Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein.