Om Freight Forwarders
- Om Freight Forwarders is coming out with a 100% book building; initial public offering (IPO) of 91,59,062 shares of 10 each in a price band Rs 128-135 per equity share.
- Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
- The issue will open for subscription on September 29, 2025 and will close on October 3, 2025.
- The shares will be listed on BSE as well as NSE.
- The face value of the share is Rs 10 and is priced 12.80 times of its face value on the lower side and 13.50 times on the higher side.
- Book running lead manager to the issue is Smart Horizon Capital Advisors.
- Compliance Officer for the issue is Hiren Khimji Bhanushali.
Profile of the company
Om Freight Forwarders is a 3PL (Third Party Logistics Provider) providing integrated service to its customer. The company’s services include international freight forwarding, customs clearance (CHA), vessel agency services, transportation service, warehousing, and distribution. It delivers cost-effective, end-to-end logistics solutions, ensuring smooth operations and timely delivery for businesses around the world, no matter their location. The company is also engaged in handling of project cargo, which is a specialized activity requiring detailed planning and technical expertise.
It serves as a trusted India-based agent, specializing in comprehensive import and export customs clearance services across all major air and seaports in the country. Backed by over four decades of operational and handling expertise, the company seamlessly combines in-depth customs knowledge with advanced information technology. Committed to stringent compliance with customs regulations and quality standards, it ensures minimal delays and reliable service for clients worldwide. The company stays well-versed with the latest customs policies, procedures, and regulations, enabling the efficient clearance of consignments via sea, air, and road. This expertise allows them to deliver seamless, efficient, and compliant logistics solutions tailored to customer needs.
The company’s comprehensive shipping and logistics solutions, specializing in the handling and transportation of Over dimensional cargo (ODC), heavy lifts cargo, breakbulk cargo, sensitive cargo, and dry bulk cargo. Under its cargo handling segment, the company provides handling and transportation, tailored to the specific requirements of each shipment, it provides specialized solutions for large and heavy cargo, non-containerized cargo, and sensitive items that require climate-controlled environments to prevent damage from saltwater, temperature fluctuations, and high humidity. Additionally, it transports large, complex pieces of equipment and materials for specific projects, such as infrastructure and oil and gas ventures.
Proceed is being used for:
- Funding of the capital expenditure requirements of the company related to the acquisition of commercial vehicle and heavy equipment
- General corporate purposes
Industry Overview
India’s logistics sector serves as the backbone of the economy, enabling the smooth and efficient flow of goods, information, and services across its vast geographical expanse. As one of the largest logistics markets globally, the sector is critical to industries such as manufacturing, agriculture, retail, and e-commerce, ensuring timely delivery of goods to consumers. The sector accounts for 13-14% of the country’s GDP. This sector is a significant driver of domestic economic activity and a crucial enabler of India’s integration into global supply chains. The sector faces challenges such as high costs, which account for 14% of the GDP - significantly higher than the global average of 7-9% observed in developed economies. This difference is largely due to inefficiencies in transportation, fragmented supply chains, and inadequate infrastructure.
The structure of India’s logistics sector reflects its complexity and dynamism. The sector is divided into various modes of transport, with roadways dominating freight movement. Railways, second in terms of freight share, are gaining importance due to investments in dedicated freight corridors to enhance speed and efficiency. Meanwhile, air transport and waterways cater to niche markets but remain underutilised. Logistics solutions in India are also evolving, ranging from basic first-party and second-party logistics services (1PL and 2PL) to advanced third-party (3PL) and fourth-party (4PL) providers that integrate technology and data-driven approaches to optimise supply chains.
The retail industry has also undergone a significant transformation since the pandemic, with many retailers adopting omnichannel sales strategies. This includes leveraging online platforms alongside traditional retail channels. Additionally, retailers are maintaining higher inventory near city limits to cater to faster replenishment cycles and to meet product demand more swiftly. These trends are expected to drive continued expansion of fulfilment centres and dark stores within the e-retail industry. Fulfilment centres are likely to grow near key supply and demand hubs to support the dynamic order sizes and low turnaround times characteristic of e-retail. Delivery times for this sector typically range from less than a day to four days, depending on transportation access (surface, rail, or air) and the delivery model selected by end-users (e.g., same-day, next day, or standard delivery). Demand from 3PL providers is also anticipated to remain strong as sectors such as electronics, white goods, retail, and FMCG increasingly rely on 3PL services to manage inventory and reduce costs. Additionally, 3PL providers offer advanced analytical capabilities, enabling companies to optimise their logistics and supply chains effectively, making 3PL an attractive solution for these industries.
Pros and strengths
End-to-end logistics services and solutions: The company’s end-to-end logistics services focus on creating solutions that address the requirements of its clients across its logistics businesses. Use of end-to-end solutions from a single 3PL logistics service provider such as it results in enhanced time and cost efficiencies for its clients, which encourages them to use its services. As part of its total logistics solution, the company offers a wide range of solutions including transportation and distribution, warehousing, in-factory logistics and other value-added services. In domestic transportation, it offers short, medium and long-haul transportation as well as in-city distribution services. The company offers international freight forwarding services. It offers multi-user warehousing services such as bonded and regular warehousing solutions. It provides its clients with value added services such as packaging, palletizing, Post Shipment Activities, etc.
Operational capabilities of its own fleet: The company’s in-house logistics capabilities are robust, encompassing a wide range of specialized equipment to support efficient operations. This includes cranes, forklifts, trailers, payloaders, tippers, and vessels, all essential to ensure smooth and effective logistical processes. As of March 31, 2025, the company has a dedicated team of 134 equipment operator who are responsible for maintaining and ensuring the operational readiness of its fleet and equipment. This skilled workforce plays a pivotal role in minimizing downtime and maximizing the performance and reliability of its logistics assets.
Track record of high quality and efficient service delivery: Since its inception in 1995, the company has distinguished itself in the logistics services industry by delivering reliable solutions across all verticals, including freight forwarding, bulk cargo handling, over-dimensional cargo transport, and the management of goods that require attention to quality and human safety at every step. Its approach is process-oriented, ensuring that it maintains standardized, consistent service levels that meet and often exceed customer expectations across multiple geographies. This commitment to excellence is reflected in its adherence to quality standards, which has earned it certifications, including ISO 9001:2015 for Quality Management, ISO 14001:2015 for Environmental Management, and ISO 45001:2018 for Occupational Health and Safety Management. These certifications highlight its dedication to providing service while also upholding its responsibility towards environmental sustainability and the safety of its workforce.
Presence across diverse industry verticals: The company offers customizable and value-added solutions to its customers. The company’s comprehensive range of single-window logistics products and services includes door-to-door B2B logistics solutions. This door-to-door offering reinforces its position as a ‘one-stop, end-to-end’ B2B solution provider, allowing its customers to benefit from various transportation modes and logistics infrastructure. It caters to clients across diverse industry sectors, including minerals, mining & steel, coal, oil & gas, energy & power, fast-moving consumer goods (FMCG), EPC & infrastructure, tyre manufacturing, and more. With a large client base of over 1,600 clients spanning various industry verticals, it has been able to leverage the knowledge and best practices gained from its experience with a broad spectrum of clients.
Risks and concerns
Significant revenue comes from limited customers: The company derives a significant portion of its revenue from operations from its top ten customers, with its single largest customer contributing more than 11.60%, of its revenue from operations for the year ended March 31, 2025. The company has garnered 40.39%, 41.13% and 36.72% of its total revenue from top ten customers in FY25, FY24 and FY23 respectively. Loss of any of these customers or a reduction in purchases by any of them could adversely affect its business, results of operations and financial condition.
Geographical constrain: The company derives a significant portion of its revenue from customers located in Maharashtra. The company has garnered 88.73%, 85.36% and 84.32% of its revenue from state of Maharashtra in FY25, FY24 and FY23 respectively. Any adverse developments in this region, such as economic downturns, political instability, or natural disasters, could materially impact its revenue and overall financial performance.
Stiff competition from domestic and international shipping and logistic players: The company faces significant competition from both domestic and international shipping and logistics players, which may lead to a reduction in its market share, adversely affecting its business, results of operations, financial condition, and cash flows. The logistics industry is highly competitive, with a large number of unorganized players. Many segments within this industry are commoditized, with low barriers to entry and exit, leading to a fragmented market. This high level of competition, from both organized and unorganized third-party logistics providers, may result in reduced revenues, lower profit margins, or loss of market share.
High working capital requirement: The company has required a significant amount towards working capital requirements which is based on certain assumptions, and accordingly, any change of such assumptions would result in changes to its working capital requirements. Its working capital requirements may increase if it undertakes larger or additional projects or if payment terms do not include advance payments or such contracts have payment schedules that shift payments toward the end of a project or otherwise increase its working capital burden.
Outlook
Om Freight Forwarders is a third-generation logistics company based in Mumbai, India. With over four decades of expertise, it operates across five continents, serving over 700 locations. The company provides end-to-end logistics services and solutions. It has presence across diverse industry verticals. On the concern side, the company derives a significant portion of its revenue from operations from its top ten customers. Loss of any of these customers or a reduction in purchases by any of them could adversely affect its business, results of operations and financial condition. Moreover, the company derives a significant portion of its revenue from customers located in Maharashtra. Any adverse developments in this region, such as economic downturns, political instability, or natural disasters, could materially impact its revenue and overall financial performance.
The issue has been offering 91,59,062 shares in a price band of Rs 128-135 per equity share. The aggregate size of the offer is around Rs 117.24 crore to Rs 123.65 crore based on lower and upper price band respectively. Minimum application is to be made for 111 shares and in multiples thereon, thereafter. On performance front, the company’s revenue from operations increased by 19.40% to Rs 4,901.37 million in Fiscal 2025 from Rs 4,105.01 million in Fiscal 2024. Moreover, the company’s profit after tax increased more than double to Rs 219.90 million in Fiscal 2025 from Rs 103.45 million in Fiscal 2024.
The company is in the process of setting up additional large format, multi-user warehouses facility in Bhiwandi, Maharashtra, funded through the internal accrual. This strategic investment will significantly expand its storage capacity, enabling it to handle larger volumes of client inventory and improve operational efficiency within its logistics network. By strategically positioning the warehouse near the Mumbai-Nashik Express Highway which can be termed as “logistically suitable locations”, it aims to optimize its distribution operations, reduce lead times, and streamline supply chain processes. With strategic storage close to distribution points, it can minimize loading and unloading wait times, which accelerates its supply chain process. This proactive approach decreases the likelihood of delayed shipments and associated demurrage fees, lowering operational costs and improving cash flow.
