Repono IPO Opens July 28: Logistics Firm Eyes ₹26.68 Cr Raise

Repono Limited, an integrated logistics and warehousing solutions provider, is launching its Initial Public Offering (IPO) on 28th July 2025. The company plans to raise ₹26.68 crores through a book-building issue. The offering is entirely a fresh issue comprising 27.79 lakh equity shares, and will be listed on the BSE SME platform on a tentative listing date of 4th August 2025.

For market participants eyeing SME IPO opportunities, Repono’s consistent financial growth and strong return ratios present an interesting proposition. However, with elevated valuation post-issue and operational risks inherent to logistics-based businesses, a thorough evaluation is warranted.

IPO Details

• IPO Opening Date: 28th July 2025

• IPO Closing Date: 30th July 2025

• Listing Date (Tentative): 4th August 2025

• Issue Size: 27,79,200 shares aggregating ₹26.68 crore

• Price Band: ₹91 – ₹96 per share

• Face Value: ₹10 per share

• Lot Size: 1,200 shares

• Minimum Investment (Retail): 2 lots (2,400 shares) = ₹2,30,400

• Registrar: MUFG Intime India Pvt. Ltd.

• Listing Platform: BSE SME

• IPO Type: Book Building

Share Reservation Breakdown

The retail allocation stands at 33.25%, with a relatively high QIB portion, indicating confidence in institutional demand.

Grey Market Premium (GMP) Insights

As of 24th July 2025, the Repono IPO’s grey market premium is reported at ₹14, indicating potential listing gains of approximately 14.58%. The estimated listing price stands at ₹110, assuming the upper end of the price band.

GMP figures suggest stable pre-listing sentiment. However, volatility is common in SME IPOs, and grey market data should be interpreted with caution.

Company Overview: Repono Limited

Founded in 2017, Repono Limited offers integrated warehousing and logistics services, specializing in solid and liquid material handling for the petrochemical, oil, and gas industries. The company also extends consulting, designing, EPC (engineering, procurement, and construction), operations, and maintenance services.

Core Business Segments Include:

• Bulk and bonded warehousing

• Secondary transportation

• End-to-end petrochemical logistics

• Design and implementation of warehouse infrastructure

• Equipment handling (forklifts, stackers, pallet systems)

Repono’s business model is asset-light in nature, supplemented by capital investments into scalable logistics infrastructure such as racking systems and fleet upgrades.

Financial Highlights

Key Financial Ratios (Pre-Issue):

• PE Ratio: 13.98

• EPS: ₹6.87

• RoNW: 36.21%

• ROCE: 38.39%

• ROE: 44.22%

• EBITDA Margin: 15.91%

• Price-to-Book (P/B): 5.06

Post-Issue Financial Impact:

The post-issue dilution results in a higher PE ratio and a decrease in EPS, although still within acceptable SME valuations when compared to listed peers.

Peer Comparison

While smaller in scale, Repono outperforms on return ratios and operational efficiency when compared to larger peers.

IPO Objective and Fund Utilization

The proceeds from the IPO are primarily aimed at strengthening logistics infrastructure and expanding technology-driven warehousing solutions.

Utilization Plan:

1. Purchase of Equipment: Forklifts, reach stackers, and pallet trolleys

2. Setup of Warehouse Racking Systems

3. Working Capital Requirements

4. General Corporate Purposes

5. Development of Warehouse Management Software (WMS)

These investments align with Repono’s goal to enhance automation, scalability, and service reach in a fragmented but growing logistics sector.

Promoter Holding Structure

The promoter dilution indicates improved public float post-listing, while still maintaining majority control.

IPO Subscription & Bidding Requirements

Investors must apply in lots, and the retail minimum is two lots or 2,400 shares.

The relatively high minimum application value for retail investors could limit participation from smaller applicants.

Subscription Status (To Be Updated)

The IPO will remain open from 28th July to 30th July 2025. Subscription details for retail, QIB, and NII categories will be tracked closely as bidding progresses. Early response, especially from institutional and HNI segments, could influence broader sentiment and listing expectations.

Strengths

• Robust Revenue Growth: 51% YoY revenue growth in FY25 reflects strong demand and execution capability.

• High Return Ratios: Pre-IPO ROE of 44% and ROCE of 38% indicate capital efficiency.

• Sector Tailwinds: Growing demand in e-commerce, oil and gas logistics, and automation-led warehousing.

• Strategic Investments: Funds allocated to scalable infrastructure and WMS technology development.

Risks and Concerns

• Client Concentration: A large portion of revenue may come from limited high-value contracts, elevating risk.

• Regulatory Compliance: Handling petrochemicals and hazardous materials involves stringent compliance.

• Liquidity Risk: SME listings often face reduced trading volumes compared to mainboard issues.

• Operational Leverage: Increase in fixed assets without proportional revenue growth could impact future margins.

Should You Invest?

Repono IPO presents a compelling case for risk-tolerant investors focused on the SME space. The company’s strong financials, high margins, and growth trajectory are supported by sectoral tailwinds. However, investors must weigh the IPO’s valuation post-listing, limited liquidity, and execution risks.

For those with a long-term horizon and understanding of the logistics sector, Repono may offer both capital appreciation and portfolio diversification. Conservative investors should monitor listing performance and post-listing results before entering.

How to Apply

1. Review the RHP (Red Herring Prospectus) and DRHP (Draft Red Herring Prospectus).

2. Use your broker platform or ASBA-enabled bank to apply.

3. Minimum application: 2 lots (2,400 shares).

4. Approve UPI mandate or ASBA bank request.

5. Await allotment status on 31st July via BSE or registrar portal.

6. Refunds will be initiated by 1st August; listing is scheduled for 4th August.

Final Thoughts

The Repono IPO signals investor appetite in logistics businesses leveraging efficiency, technology, and capital-light growth. It aligns with India’s larger narrative of supply chain reform and infrastructure digitization. However, SME listings come with distinct dynamics—liquidity constraints, higher volatility, and stringent financial scrutiny post-listing.

Market participants should evaluate allocation strategy, GMP trends, and peer comparisons carefully. Repono’s valuation, operational strength, and expansion roadmap make it a stock to watch post-listing for potential mid-cap transformation over the next business cycle.

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