Iware Supplychain shares to list today. GMP suggests muted listing ahead

Synopsis

Iware Supplychain Services is set to debut on the BSE SME platform with modest expectations, indicated by a grey market premium of Rs 2. The IPO, aiming to raise Rs 27 crore, was subscribed 3 times. The company, an integrated logistics player with warehousing and transportation services, reported revenues of Rs 85.82 crore and a profit of Rs 6.

Iware Supplychain Services will make its stock market debut today on the BSE SME platform. Ahead of its listing, the company was commanding a modest grey market premium (GMP) of Rs 2 per share, indicating muted but positive listing expectations. The IPO, which aimed to raise Rs 27 crore through a fresh issue of 28.56 lakh shares, was subscribed just 3 times.

The tepid interest in the IPO was in line with modest responses most of the SME issues received this year.

Company overview

Incorporated in 2011, Ahmedabad-headquartered Iware Supplychain is an integrated logistics player offering warehousing, third-party logistics (3PL), transportation, rake handling, and auxiliary manufacturing services. It manages over 8 lakh square feet of warehousing space across Gujarat, West Bengal, Uttar Pradesh, Rajasthan, Punjab, Haryana, and Delhi.

The company also owns a fleet of 47 vehicles and operates business auxiliary services such as sub-assembly for OEMs at its Karsanpura facility in Gujarat. With a client list spanning FMCG, edible oil, and home appliances, Iware positions itself as a one-stop supply chain partner for pan-India operations.

Financials

For the year ended March 2025, Iware posted revenues of Rs 85.82 crore and a profit after tax of Rs 6.02 crore, reflecting a steady growth trajectory. The company reported a PAT margin of 7%, with a low debt-to-equity ratio of 0.38x. However, nearly 36% of its operational revenue was spent on lorry hire charges, highlighting a cost-intensive business model.

Its geographic concentration -- with over 67% of revenues coming from Gujarat -- could pose risks in the event of regional slowdowns. Moreover, with 41% of total expenses tied to lorry hire, any spike in fuel or freight costs may hurt margins.

While the warehousing and logistics sector continues to attract investor interest due to policy support and sectoral tailwinds, Iware’s reliance on regional contracts, rising operational costs, and modest subscription figures suggest the stock may see a flat to modest premium on debut.

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