Jayesh Logistics Faces Muted Debut on NSE SME Despite Overwhelming IPO Demand

Jayesh Logistics Limited, the integrated logistics and supply chain services provider with a strong focus on the Indo-Nepal corridor, experienced a subdued market debut on the NSE SME platform on Monday, November 3, 2025. This soft listing came as a surprise to many market participants, given the overwhelming subscription the company’s Initial Public Offering (IPO) received just a week prior.

The share, listed under the symbol ‘JAYESH’, opened at ₹120 per share, which represented a minor 1.64% discount compared to its issue price of ₹122 per share. The stock quickly came under pressure following the weak opening, hitting the lower circuit shortly thereafter at ₹114 per share. This disappointing start meant that investors who applied for the IPO hoping for immediate listing gains were left empty-handed.

A Tale of Two Market Sentiments: Subscription Frenzy vs. Listing Reality

The lukewarm debut stands in stark contrast to the frenzied investor appetite witnessed during the IPO subscription window from October 27 to October 29. The ₹28.63 crore public issue was a resounding success, being subscribed over 65.59 times overall.

• Non-Institutional Investors (NIIs) led the subscription race, bidding for an extraordinary 138.75 times their reserved quota.
• Retail Individual Investors (RIIs) also showed strong participation, subscribing 51.79 times.
• Qualified Institutional Buyers (QIBs) demonstrated robust confidence, with their portion being subscribed 40.86 times.
• This massive oversubscription typically translates to significant listing premiums in the SME segment. Indeed, grey market premium (GMP) indicators ahead of the listing had suggested a modest premium was on the cards. The ultimate listing at a discount, therefore, highlights the often unpredictable nature of market sentiment on the day of debut, despite high application demand

Company Profile and Growth Drivers

Jayesh Logistics operates in the logistics and supply chain management sector, offering a comprehensive suite of services including freight services via road and rail, as well as non-freight support like loading, unloading, and customs clearance.

Key Highlights of the Company:

• Geographic Niche: The company has established a specialized foothold in Eastern India, particularly excelling in the high-demand cross-border cargo movement between India and Nepal.
• Technology Focus: It has invested in technology, leveraging GPS-integrated fleet tracking and developing its proprietary SMART-SYS platform, which aims to integrate ERP, AI, and blockchain for enhanced visibility and operational efficiency.
• Financial Growth: Jayesh Logistics has reported strong financial performance, with its revenue for FY25 increasing by 27% year-on-year to ₹112 crore, and its Profit After Tax (PAT) more than doubling to ₹7.20 crore.

Utilisation of IPO Proceeds

The ₹28.63 crore raised through the fresh issue will be strategically utilised to fuel the company’s next phase of expansion and technological upgrade:

• Capital Expenditure: A significant portion of the funds (approximately ₹8.85 crore) is earmarked for the purchase of new side-wall trailers to enhance its owned fleet capacity.
• Working Capital: A substantial amount (around ₹11.24 crore) will be used to meet working capital requirements to support its growing operations.
• Technology Upgrade: The company plans to allocate funds for the implementation of Phase 2 of its Smart Logistics Application, a move designed to deepen its tech-enabled service offering.

Despite the initial soft start on the bourse, market observers suggest that Jayesh Logistics’ long-term performance will ultimately depend on its ability to effectively execute its expansion plans, maintain its competitive edge in the Indo-Nepal corridor, and successfully integrate its technological initiatives to drive operational efficiencies in the competitive logistics industry.