Jayesh Logistics IPO Listing: Shares Hit Lower Circuit After Weak Debut, Investors Face Losses

Jayesh Logistics shares experienced a disappointing entry on the NSE SME platform today, delivering a significant blow to IPO investors. The company's stock listed at a discount and immediately plummeted to its lower circuit, leading to a notable erosion of investor capital. This performance stood in stark contrast to the Grey Market Premium (GMP) indications, which had suggested a 7, while 38% premium on listing.

Disappointing Debut and Investor Losses

Shares of Jayesh Logistics were issued at a price of ₹122 per share during its Initial Public Offering. However, the stock commenced trading on the NSE SME at ₹120, while 00, marking a 1. 64% discount from its issue price, while this meant that IPO investors received no listing gains; instead, their capital immediately depreciated. This outcome was particularly disheartening for those who had relied on grey market signals, which had projected a listing at ₹131 per share. Following its weak debut, the stock continued its downward trajectory, hitting the lower circuit at ₹114. 00. Consequently, IPO investors are now facing an overall loss of 6. 56% on their initial investment, while this sharp decline reflects both market volatility and investor sentiment towards the company's shares post-listing.

Overwhelming IPO Subscription Response

Despite the weak market debut, Jayesh Logistics' IPO had received an overwhelming response from investors during its subscription period, which ran from October 27 to October 29. The IPO was subscribed more than 65. 59 times overall. The portion reserved for Qualified Institutional Buyers (QIBs) was subscribed 40, while 86 times (excluding anchor investors), while the Non-Institutional Investors (NIIs) segment saw a subscription of 138. 75 times. Retail investors also showed strong interest, with their portion being subscribed 51. 79 times. This solid subscription indicates strong investor confidence in the company's business model. And future prospects, even though market conditions on the listing day proved unfavorable.

Utilization of IPO Proceeds

Jayesh Logistics successfully raised ₹28, while 63 crore through its IPO, which involved the issuance of 23. 47 lakh new shares with a face value of ₹10 each. The company has outlined a clear plan for the utilization of these funds across various strategic objectives. Approximately ₹8, while 85 crore is earmarked for the purchase of side wall trailers, which will enhance the company's logistics capacity and operational efficiency. A significant portion, ₹11. 24 crore, has been allocated to meet working capital requirements, crucial for sustaining day-to-day operations. Also, ₹72 lakh will be invested in the implementation of the second phase of its smart logistics application, aiming to improve technological capabilities and service delivery. The remaining funds will be utilized for general corporate purposes, providing flexibility for future growth initiatives.

About Jayesh Logistics

Established in May 2011, Jayesh Logistics is a prominent provider of comprehensive logistics services across India and its neighboring countries, including Nepal, Bhutan, and Bangladesh, while the company specializes in the movement of goods, port loading and unloading operations, warehousing, and distribution services. A key feature of its service offerings is real-time tracking of shipments, which provides clients with transparency and enhances operational efficiency. By offering end-to-end logistics solutions, Jayesh Logistics plays a vital role in streamlining supply chains for its diverse clientele.

Solid Financial Performance

Jayesh Logistics has demonstrated consistently strong financial performance over the past few fiscal years. The company's net profit grew from ₹1, while 09 crore in FY23 to ₹3. 16 crore in FY24, and further to ₹7. 20 crore in FY25. During this period, the company's total income increased at a Compound Annual Growth Rate (CAGR) of over 36% annually, reaching ₹112. 03 crore, which underscores its operational effectiveness and expanding market reach. For the first quarter of the current fiscal year (April-June 2025), the company reported a net profit of ₹2. 02 crore and a total income of ₹25. 25 crore, while as of the end of the June 2025 quarter, the company had a debt of ₹29. 65 crore and reserves and surplus amounting to ₹13. 01 crore, reflecting its financial standing.

Market Dynamics and Future Prospects

According to experts, the performance of shares on the listing day is primarily determined by prevailing market conditions and the company's intrinsic business situation, rather than just Grey Market Premium indications, while in the case of Jayesh Logistics, despite strong subscription numbers and a solid financial track record, adverse market conditions impacted its listing. However, the company's solid business model, its presence in neighboring countries, and consistent financial growth could potentially offer better prospects for its shares in the future. Investors are advised to consider the company's fundamental strengths from a long-term perspective, rather than focusing solely on short-term market fluctuations.