Glottis Submits Draft Papers to Sebi to Raise Rs 450-500 Crore Through IPO

Glottis, a logistics service provider based in Chennai, has submitted initial documents to the Securities and Exchange Board of India (Sebi) for an IPO. The company aims to raise between Rs 450 crore and Rs 500 crore through this public offering. The IPO will include a fresh issue of equity shares worth Rs 200 crore and an offer for sale (OFS) of up to 1.45 crore equity shares by the promoters.

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Details of the Offer for Sale

Promoters Ramkumar Senthilvel and Kuttappan Manikandan plan to sell 72.85 lakh equity shares each under the OFS. Currently, both hold a 49.49% stake in Glottis. The IPO's expected size is estimated to be between Rs 450 crore and Rs 500 crore, according to market sources. The funds from the fresh issue will be allocated for various purposes.

Utilisation of IPO Proceeds

The company intends to use Rs 53 crore from the fresh issue for purchasing commercial vehicles. Additionally, Rs 38 crore will be directed towards debt repayment, with the remaining funds earmarked for general corporate purposes. As of March 2024, Glottis had total borrowings amounting to Rs 9.3 crore, as indicated in the draft papers filed on Monday.

Financial Performance and Business Focus

For the fiscal year 2024, Glottis reported revenue from operations at Rs 497.4 crore and a net profit of Rs 31.5 crore. The company is recognised as a leading multi-modal, integrated logistics service provider with a specialised focus on energy supply chain solutions. Pantomath Capital Advisors Pvt Ltd is serving as the sole book-running lead manager for this issue.

The IPO marks a significant step for Glottis as it seeks to expand its operations and strengthen its financial position. By raising capital through this public offering, the company aims to enhance its capabilities in providing logistics services across various sectors.