B2B commerce firm OfBusiness is gearing up to file its Draft Red Herring Prospectus (DRHP) with SEBI in November 2026. The company aims to raise approximately $800 million through a mix of fresh shares and an offer for sale, targeting a stock market debut by early 2027. The IPO will focus on the core commerce business, while the financing arm, Oxyzo, will remain a separate, unlisted entity.
OfBusiness, known as OFB Tech Ltd, is preparing for an initial public offering (IPO) as it looks to raise roughly $800 million. The company is currently working with a group of investment banks, including Morgan Stanley, JP Morgan, Citibank, and Axis Capital, to finalize its public market entry strategy. The management plans to submit the Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India by November 2026, with a target to list on the stock exchanges between March and April 2027.
Financial and Operational Context
The company has demonstrated growth leading up to this filing. For the fiscal year 2026, OFB Tech reported consolidated revenue of ₹20,645 crore and a profit after tax of ₹724 crore. In its core commerce segment, the company generated an EBITDA of ₹769 crore, resulting in an EBITDA margin of 4%. The firm operates in major B2B sectors, including metals, chemicals, food processing, and apparel.
A key aspect of the company’s business model is its move toward vertical integration. Unlike pure trading platforms, the company has invested in 17 manufacturing and packaging subsidiaries. This strategy is intended to give the company more control over product quality and supply chain efficiency. However, integrating these 17 entities into the core business remains a significant operational task that investors will likely watch for efficiency improvements.
Structure and Risks
The planned IPO structure is expected to consist of a fresh share issuance of up to $200 million, with the remaining portion coming from an offer for sale by existing shareholders. It is important to note that the company’s financing arm, Oxyzo Financial Services, will not be part of the listed entity and will remain a separate business.
Investors evaluating the upcoming offer may want to consider the inherent nature of the company’s business. As a B2B trading entity, the company is exposed to cyclical commodity price fluctuations, particularly in the metal and chemical segments, which can impact profitability. Additionally, the trading business typically operates on thin margins, making cost management and volume growth critical to maintaining financial performance. The company also faces potential operational risks tied to managing a large manufacturing footprint and navigating foreign exchange fluctuations, which can affect its import and export activities.
The next major development for the company will be the actual filing of the DRHP, which will provide more granular details on the use of funds, debt levels, and specific risk factors identified by the company. Market participants will also watch for updates on the final valuation sought by the company and the prevailing market sentiment at the time of the launch.