Snowman Logistics Ltd, a cold chain unit of Gateway Distriparks Ltd, has opened its public issue, the first public float since the new government took over in May, on Tuesday. Around four-fifths of the issue was subscribed at the end of day one, according to data collated by the bourses.
The firm also roped in a clutch of mutual funds besides private equity firm Faering Capital as anchor investors.
It said anchor investors subscribed to 94,50,000 equity shares at Rs 47 per share, or the upper end of the price band of Rs 44-47 a share, bringing in Rs 44.4 crore in the process.
India Evolving Fund, a PE fund managed by Faering Capital, has picked 3,492,000 shares bringing in Rs 16.4 crore as part of anchor investment commitment.
The other anchor investors include ICICI Prudential Growth Fund Series 2 which subscribed to 2,127,900 shares, ICICI Prudential Value Fund Series 4 picking 851,100 shares, IDFC Sterling Equity Fund subscribing to 2,659,800 shares and IDFC infrastructure Fund taking in 319,200 shares.
The company is looking to garner as much as Rs 197.4 crore in toto from the public issue which closes on August 28.
Bangalore-headquartered Snowman provides temperature-controlled storage services to a number of industries, catering to the likes of Hindustan Unilever, Baskin Robbins, Pizza Hut, Mother Dairy and ITC.
It has 23 temperature controlled warehouses spread over 14 locations. It operates 238 reefer vehicles consisting 175 leased and 63 owned ones. It has warehouses in all major cities, including Mumbai, Chennai and Pune, and plans to expand to other cities like Chandigarh and Surat.
Snowman was initially promoted by the Amalgam group in 1997. Subsequently, three Japanese companies (Mitsubishi Corporation, Mitsubishi Logistics Corporation and Nichirei Logistics Group) acquired a significant stake in the firm.
Currently, Gateway Distriparks holds around 54.04 per cent stake while Mitsubishi Corporation and Mitsubishi Logistics Corporation together hold over 14 per cent, IFC owns 12.46 per cent stake and Norwest Venture Partners 13.86 per cent.
Following the IPO, Gateway Distriparks’ stake holding in Snowman Logistics will come down to 40.41 per cent.
The PE investors are sitting on neat profit on Snowman. Norwest, which came as pre IPO investor, is sitting on unrealised gains of around 33 per cent on its one-year-old investment (at the upper end of the price band).
IFC, which had originally invested Rs 25 crore four years ago, part exited early this year by selling a quarter of its holding to the promoter for Rs 18 crore. Its remaining holding is worth Rs 72.5 crore.
Snowman has been on a fast-clip growth path with its revenues rising almost five times and profit shooting up six times in the last four years.
During the year ended March 31, 2014, Snowman Logistics reported a net profit of Rs 23.2 crore against a net profit of Rs 19.8 crore for the previous fiscal. Net revenue rose from Rs 113.7 crore to Rs 153.4 crore in the same period.
(Edited by Joby Puthuparampil Johnson)