Committed Cargo Care IPO fully booked on day 3, retail portion subscribed over 58 times so far; check GMP, other details

Committed Cargo Care IPO opens for subscription on Friday, October 06, and closes on Tuesday, October 10. Committed Cargo Care Ltd IPO's price band is set at ₹77.

The face value of the equity shares is ₹10 apiece and the issue price is 7.7 times of the face value. The promoters of the company are Rajeev Sharma, Nitin Bharal, Narendra Singh Bisht, Yash Pal Arora and Sonia Bharal. Committed Cargo IPO lot size is 1600 shares and in multiples thereof.

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Committed Cargo Care IPO details

Committed Cargo IPO, which is worth ₹24.95 crore, is completely a fresh issue of 32,40,000 equity share; there is no offer for sale (OFS) component, according to Red Herring Prospectus (RHP).

The company plans to use the net proceeds from the offering to fund working capital requirements; and general corporate purposes.

As per RHP, the company has taken out short-term loans from banks. The outstanding amounts under these loans are, respectively, ₹14.69 lakhs, ₹50.60 lakhs, and ₹16.25 lakhs for the financial years ending March 31, 2022, March 31, 2023, and April 30, 2023.

Also Read: Committed Cargo Care IPO opens tomorrow, issue price set at ₹77. Check GMP, review, other details

The main purpose of the working capital will be to increase the company's present activities. The company stated in its RHP that it expects a boost in profitability as a result of funding its company's working capital needs.

Committed Cargo Care Ltd IPO's (P/E ratio of 10.94) listed industry peers are Jet Freight Logistics Ltd (with P/E ratio of 980), Total Transport Systems Ltd (with P/E ratio of 16.53), and Tiger Logistics (India) Ltd (with P/E ratio of 18.85).

Fedex Securities Private Ltd is the book running lead managers to the issue, and the registrar is Bigshare Services Private Ltd.

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Committed Cargo Care IPO subscription status

Committed Cargo IPO subscription status was 87.78 times on day 3. The issue received good response from retail investors who's portion set was subscribed 78.73 times, and positive response from non-institutional buyers who's portion set was subscribed 94.20 times, according to data on chittorgarh.com.

The company has received bids for 26,99,40,800 shares against 3,240,000 shares on offer, according to data on chittorgarh.com.

Committed Cargo IPO subscription status was 2.36 times on day 1, and the issue was subscribed 17.03 times on day 2.

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Committed Cargo Care Limited IPO GMP

Committed Cargo Care IPO GMP today or grey market premium is +10. This indicates Committed Cargo Care share price were trading at a premium of ₹10 in the grey market on Tuesday, according to investorgain.com

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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Committed Cargo IPO review

“The company is operating in a highly competitive segment. It marked inconsistency in its top line, but the bottom line kept growing. The growing economy indicates bright prospects for this segment. Based on FY24 annualised earnings, the issue appears fully priced. Investors may park funds for medium to long-term rewards," said Dilip Davda, the contributing editor at Chittorgarh.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.