Glottis Ltd

About Glottis Limited IPO

Glottis Limited IPO is an IPO of TBA. It consists of an offer for sale of up to 14,500,000 equity shares and a fresh issue aggregating up to ₹160 crores. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA and the initiation of refunds will take place on TBA.

Objective of Glottis Limited IPO

• Funding of capital expenditure requirements of the company towards the purchase of goods transportation vehicles.
  
• Repayment and/or pre-payment, in part or full, of certain borrowings availed by the company.
  
• Funding inorganic growth through unidentified acquisitions and general corporate purposes.
  

Industry Outlook

Merchandise exports of the country are expected to grow at a CAGR of 9.9%, whereas merchandise imports are anticipated to rise at a CAGR of 10.8% in the upcoming years, translating to exports reaching US$ 68,300 crores and imports reaching US$ 101,800 crores in FY28. Factors like free-trade policies, rise in public spending, favourable taxation policies, growth in private investments, and reforms in the financial sector have increased the FDI flow facilitating trade-led growth in GDP.

The logistics sector has been recognised as a core enabler for the development of India to reach the government’s vision of achieving a US$ 5T economy by CY25. As per the Economic Survey FY18, the logistics industry in India was pegged at INR 12,80,000 crores in FY19. The industry has grown at 11% CAGR to ₹21,60,000 crores (US$ 26230 crores) over FY19-24. According to industry reports and market estimates, the logistics industry is forecasted to reach ~₹35,30,000 crores (US$ 42410 crores) by FY29, growing at a CAGR of 10.3%.

Indian ocean freight market has expanded from US$ 450 crores in FY19 to US$ 780 crores in FY24 and is projected to reach US$1390 crores by FY29, with a robust CAGR of 11.9% over FY24-29. Similarly, the Indian air freight market has grown from US$ 160 crores in FY19 to US$ 210 crores in FY24 and is expected to reach US$ 280 crores by FY29, growing at a CAGR of 6.6% during the same period.

Company Information

Glottis is a leading multi-modal, integrated logistics service provider with a specialised focus on the energy supply chain solutions (Source: Company Commissioned 1Lattice Report).

With global footprint and expertise in handling complex supply chains, Glottis serves customers across multiple industries, with particular emphasis on energy infrastructure and renewable energy projects. They have over the years built a track record of offering freight forwarding services to varied industries including renewable energy industry, engineering products, home appliances, granite and minerals, timber and other industries including agro, automobile chemicals, textiles, machineries among others, and have been increasing their share of wallet from existing customers by offering freight forwarding services for products forming part of their supply chain.

Glottis has been instrumental in ocean haulage/freight movement of 13.8 GW (cumulative) as of March 2024, indicating 16.83% of the total installed solar capacity.

Risks of Glottis Limited IPO

• They derive 42.42% of their revenue from operations during the fiscal 2024, from the renewable energy industry, and therefore their business operations are dependent upon the said industry. Any downturn in the renewable energy industry and the other industries in which their customers operate, would create an adverse impact on their revenue from operations, cash flows and financial conditions.

• The company has experienced negative cash flow in the past and may continue to do so in the future, which could have a material adverse effect on their business, prospects, financial condition, cash flows and results of operations.

• Majority of their orders are concentrated in the Asian region. Any adverse changes in economic and political conditions in the countries forming part of this region may have an adverse impact on their business, results of operations, cash flows, and financial condition.

Anchor Investor Information

The Anchor Investors Bid/Offer period shall be one Working Day prior to the Bid/Offer Opening Date

IPO Registrar and Book Running Lead Managers

Book running lead managers:

Pantomath Capital Advisors Private Limited

Registrar for the IPO is KFin Technologies Limited

Business Model

The company earns its revenue through the following sources:

• Delivering end-to-end logistics solutions with multimodal capabilities across verticals to optimise the movement of goods across geographies including (i) ocean freight forwarding (project cargo load and full container load, import as well as export) (ii) air freight forwarding (import as well as export) (iii) road transportation along with other ancillary services, including warehousing, storage, cargo handling, third-party logistics (3PL) services and custom clearance, among others.

Company Growth Trajectory

The company’s ocean freight volume has increased by 61.80% from 58,760 TEUs in fiscal 2022 to 95,072 TEUs in fiscal 2024, while their profit margins as a % of revenue from operations has grown from 3.70% in fiscal 2022 to 6.34% in fiscal 2024, on the basis of their restated financial statements.

As of September 15, 2024, they have non-binding work orders of FCL transportation aggregating to ₹43.00 crores for execution during fiscal 2025.

Air freight forwarding (import and export) accounted for ₹9.65 crores, ₹6.13 crores and ₹3.81 crores, representing 1.94%, 1.28% and 0.44%, respectively of their revenue from operations as of the fiscals 2024, 2023 and 2022.

Inland or surface transportation services accounted for ₹13.61 crores, ₹7.02 crores and ₹12.70 crores, representing 2.74%, 1.47% and 1.45%, respectively of their revenue from operations as of fiscal 2024, 2023 and 2022.

Company Market Position

With over 2 decades of experience, Glottis Limited is one of the leading freight forwarding players operating in the renewable energy sector import and export in India.

Glottis received the title of ‘Freight Forwarder of the Year’ in the Cargo and Logistics Awards, four years in a row (FY21-24). Glottis was the top supporter of SAFMARINE for 4 consecutive years (FY13 to FY16) and 3rd top supporter of MAERSK for 2 consecutive years (FY15 & FY16).

How To Check Allotment Status of Glottis Limited IPO?

You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar KFin Technologies Limited. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Glottis Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the KFin Technologies Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Glottis Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status