Exim Routes Shares Launch Today: Insights from GMP Trends

Exim Routes is poised for a promising entry into the market on the NSE SME platform on December 19. Current grey market indicators suggest a significant upside at the listing, even amidst a cautious overall atmosphere for small-cap and SME stocks. The shares are tracking a grey market premium (GMP) of approximately 40%.

The elevated GMP indicates robust interest from both institutional and non-institutional investors, reflecting a strong demand for unique business models in the SME sector.

## IPO Subscription and Investor Interest

The Rs 43.73 crore IPO, which closed on December 16, received an impressive overall subscription rate of 15.23 times. The enthusiasm was particularly evident among non-institutional investors, whose subscription rate reached 22.43 times. Qualified institutional buyers followed with a subscription rate of 19.11 times, while retail investors subscribed nearly 10 times their allocated quota, demonstrating widespread interest.

Prior to the public offering, Exim Routes secured Rs 12.42 crore from anchor investors, further enhancing confidence in the offering. The IPO consists solely of a fresh issue of 49.7 lakh shares, valuing the company at a pre-IPO market capitalization of roughly Rs 165 crore.

## Business Model and Global Operations

Exim Routes operates a tech-driven global platform that supports cross-border trade in recyclable materials, predominantly waste paper. The company connects international suppliers with Indian paper mills through its proprietary AI-enabled B2B platform, ERIS. This platform offers comprehensive services, including sourcing, quality assurance, logistics, and trade execution. Its operations extend across India, Singapore, the US, the UK, Germany, and South Africa.

Financially, Exim Routes has demonstrated strong growth in recent years, with revenue increasing by 67% year-on-year in FY25, alongside an 80% rise in profit after tax.

## Future Plans

The proceeds from the IPO will primarily be allocated to the development and upkeep of its ERIS platform, supporting working capital requirements, investing in office infrastructure, and covering general corporate expenses.

As the market eagerly anticipates its debut, are you considering investing in Exim Routes?