Chennai's Glottis Eyes IPO to Expand Commercial Fleet and Reduce Debt

Chennai-based logistics company Glottis plans to raise funds through an IPO, including a fresh issue of equity shares worth Rs 200 crore and an offer for sale by promoters. Proceeds will be used for purchasing commercial vehicles, debt repayment, and general corporate purposes.

Logistics service provider Glottis has submitted preliminary papers to capital markets regulator SEBI for raising funds via an initial public offering (IPO).

The Chennai-based firm's IPO comprises a fresh equity issue valued at Rs 200 crore and an offer for sale (OFS) of up to 1.45 crore equity shares by its promoters, as per the Draft Red Herring Prospectus (DRHP).

Promoters Ramkumar Senthilvel and Kuttappan Manikandan, who each hold a 49.49% stake in Glottis, will divest 72.85 lakh equity shares each under the OFS. The fresh issue's proceeds will allocate Rs 53 crore for new commercial vehicles, Rs 38 crore for debt repayment, and the balance for general corporate needs.

As of March 2024, the company's borrowings totaled Rs 9.3 crore, according to DRHP filings. Glottis specializes in multi-modal, integrated logistics services with a focus on energy supply chain solutions. Pantomath Capital Advisors Pvt Ltd is the sole book-running lead manager for the issue.

(With inputs from agencies.)