Global Ocean BSE SME IPO review (Not Rated)

•    The company is providing freight forward multi modal logistics solutions globally.
•    It marked a severe setback for FY24 following covid that spurted volatility in freight forward charges.
•    It marked sudden jump in its bottom lines from FY25 onwards which has helped it in fancy valuations.
•    The company is operating in a highly competitive and fragmented segment.
•    Based on its recent financial data, the issue appears aggressively priced. 
•    Only well-informed/cash surplus/risk seekers may park moderate funds for medium term, others may stay away.

ABOUT COMPANY:
Global Ocean Logistics India Ltd. (GOLIL) is a freight forwarding company having multi modal logistics solutions. It has logistics services with diverse capabilities across verticals include (i) shipping/coastal transportation including ODC (Over Dimensional Cargo) (“Ocean Freight Forwarding”); (ii) road/rail transportation (“Transport”); (iii) air cargo (“Air Freight Forwarding”); (iv) Container Freight Station solution (“CFS”); (iv) Custom Clearance (v) and; other services. 

The company also provide integrated logistics solutions including project logistics and third-party logistics (“3PL”). It operates through major Indian ports, including NHAVA Sheva, Hazira, Tumb, Pune, Mundra and Chennai and have pan-India operations covering over 23 states and union territories through its network of 4 marketing offices located in the city of Vishakhapatnam, Jaipur, Pune, Tuticorin. GOLIL primarily served clients through 263 ports across the globe and handled about 30,520 shipments and 91, 968 TEUs from Fiscal 2023 to period ended September 30, 2025. Its in-house team consisting of 55 personnel as of October 31, 2025 with over a decade of experience, ensures smooth coordination across all departments, enabling precise tracking, proactive issue resolution, and continuous process optimization. Further, during the period ended September 30, 2025, it has processed over 25,000 Bill of Ladings.

The company operates an “asset-light” business model, leveraging a network of trusted business partners for assets such as containers, commercial vehicles, warehouses and multi-axle transporters. It is a Multimodal Transport Operator registered under the Multimodal transportation of Goods Act 1993 to carry on the business of multimodal transportation. The company has license and certificate of MTO, FMC, AEO, FFFI and ISO. Additionally, Company is recognised member of WCA and JCtrans having worldwide member offices with network of more than 20,000 agents. These associations have a set of freight forwarding agents in each and every country and they connect all such kind of agents in different parts of the world. 

By paying an annual membership fee, it gains access to this extensive network, which allows it to efficiently connect exporters / importers by offering comprehensive third-party door-to-door shipment services and insurance among members. The company has access to large vehicle network through its network of more than 20,000 agents which enables it to scale business as the demand increases and also cater to large business opportunities. Additionally, its technology-enabled ‘asset-light’ business model which facilitates the flexibility to develop and offer customized logistics solutions to a diverse set of customers and industries across the globe.

The company specializes in providing services to importers sourcing goods from key regions, including Europe, the USA, South Africa, China, Southeast Asia, and the Gulf countries, where it has an established presence through its network of agency partners. At the same time, it is dedicated to supporting exporters who wish to ship products to these regions. Through strategic collaborations with agency partners, itis able to offer its services in markets where it does not operate directly. These partnerships also play a crucial role in helping it explore and secure new business opportunities in India, leveraging its partners' networks in regions where they lack a direct operational footprint. As of the date of this offer document, it had 55 employees on its payroll.

ISSUE DETAILS/CAPITAL HISTORY:
The company is coming out with its maiden book building route IPO of 3899200 equity shares to mobilize Rs. 30.41 cr. The company has announced the price band of Rs. 74 – Rs. 78 per share of Rs. 10 each. The IPO opens for subscription on December 17, 2025, and will close on December 19, 2025. The minimum application to be made is for 3200 shares and in multiple of 1600 shares thereon, thereafter. Post allotment, shares will be listed on BSE SME. The issue constitutes 27.00% of post-IPO paid-up equity capital of the company. From the net proceeds of the issue, the company will utilize Rs. 21.27 cr. for working capital, and the rest for general corporate purpose.

The IPO is solely lead managed by Marwadi Chandarana Intermediaries Brokers Pvt. Ltd., while KFin Technologies Ltd. is the registrar to the issue. Mansi Share & Stock Broking Pvt. Ltd. Is the market maker. Marwadi Chandara Intermediaries Brokers and Mansi Share & Stock Broking Pvt. Ltd., are syndicate members.

After issuing initial equity shares at par value, it has converted further equity chares at a fixed price 230 Rs. 230 per share in March 2025, as well as bonus equity shares in the ratio of 87 for 10 in March 2025. The average cost of acquisition of shares by the promoters is Rs. NIL, and Rs. 3.17 per share. 

Post-IPO, company’s current paid-up equity capital of Rs. 10.54 cr. will stand enhanced to Rs. 14.44 cr. Based on the upper price band of the IPO, the company is looking for a market cap of Rs. 112.65 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has (on a consolidated basis) posted a total revenue/net profit, of Rs. 191.43 cr. / Rs. 3.83 cr. (FY23), Rs. 103.45 cr. / Rs. 2.63 cr. (FY24), Rs.  191.60 cr. / Rs. 6.82 cr. (FY25). For H1- FY26 ended on September 30, 2025, it earned a net profit of Rs. 4.54 cr. on a total revenue of Rs. 108.31 cr. Its projected trade receivables are at an alarming level. According to the management, it marked a setback for FY24 under Covid impact following highly volatile freights. However, the sudden boost in its bottom lines in a pre-IPO period i.e., from FY25 onwards raises eyebrows and concern over its sustainability in a highly competitive and fragmented segment.

For the last three fiscals, the company has reported an average EPS of Rs. 5.05, and an average RoNW of 40.57%. The issue is priced at a P/BV of 3.75 based on its NAV of Rs. 20.80 as of September 30, 2025, and at a P/BV of 2.36 based on its post-IPO NAV of Rs. 33.10 per share (at the upper cap). Its net debt to EBITDA ratio of 6.06 and debt equity ratio of 2.35 as of August 31, 2025, raises alarm.

If we attribute its FY26 super annualized earnings on post-IPO expanded equity base, then the asking price is at a P/E of 12.40, and based on its FY25 earnings, the P/E stands at 16.53. Thus, the issue appears aggressively priced, and needs caution as the margins reported are not sustainable in long term.

The company has posted PAT margins of 2.02% (FY23), 2.58% (FY24), 3.58% (FY25), 4.23% (H1-FY26), but its RoCE Margins data is missing from offer documents. 

DIVIDEND POLICY:
The company not paid any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy, based on its financial performances and future prospects. 

COMPARISON WITH LISTED PEERS:
As per the offer document, the company has shown S J Logistics, Blue Water, Tiger Logistics, as its listed peers. They are currently trading at a P/E of 8.94, 10.5, and 14.3 (as of December 12, 2025, 2025). However, they are not truly comparable on an apple-to-apple basis. This comparison appears to be an eyewash.

MERCHANT BANKER’S TRACK RECORDS:
This is the 8th mandate from Marwadi Chandarana in the last two fiscals. Out of the last 6 listings, 2 opened at par and the rest with premium ranging from 0.70% to 90.00% on the date of listing.