Delhi-based Pristine Logistics & Infraprojects Ltd (Pristine), has filed its draft papers with markets regulator Securities and Exchange Board of India (SEBI), to raise Rs 250 crore through an initial public offering (IPO).
The public listing will also have an offer-for-sale (OFS) of up to 20,066,269 (2 crore) equity shares, the company said.
Pristine’s marquee shareholder British International Investment (BII – formerly CDC Group) will divest up to 17,779,067 (1.78 crore) equity shares through its investment vehicle, India Infrastructure Fund II, as part of the OFS.
In 2015, UK-based development finance institution, then CDC Group Plc, had invested around $25 million (over Rs 150 crore) in Pristine. As of 2020, it owned over 50% stake in Pristine.
“The issue has a face value of Rs 5 per equity share for the proposed share sale. The offer is being made through the book building process, wherein not more than 50% of the offer shall be available for allocation to qualified institutional buyers (QIBs), not less than 15% shall be available for allocation to non-institutional bidders and not less than 35% shall be available for allocation to retail bidders,” Pristine said in the IPO announcement.
This development comes at a time when tech-enabled logistics firm, Delhivery is already in its last phase to raise Rs 5,235 crore and due to be listed on 24 May on Indian exchanges. Delhivery reduced its issue size by one-third from Rs 7,460 crore.
A substantially smaller size, Pristine’s proceeds from its fresh issuance worth Rs 175 crore will be utilised for repayment or prepayment of borrowings, in full or part of all or certain borrowings availed by its subsidiaries and general corporate purposes, it said.
The company may consider a pre-IPO placement of equity shares aggregating up to Rs 50 crore. If such a placement is undertaken, the size of the fresh issue will be reduced.
Besides BII, other shareholders that will offload stake in the OFS are co-founders Amit Kumar (up to 6 lakh equity shares), Sanjay Marwar and Rajnish Kumar (up to 6.5 lakh shares each) and Durgesh Govil (up to 96,000 shares).
Other promoters that will sell less than one lakh shares include Jyoti Kumar, Renu Govil, Ankur Govil, Anju Singh and Mohammad Athar Shams.
ICICI Securities, JM Financial and HSBC Securities and Capital Markets (India) Private Limited are the book running lead managers to the issue.
Incorporated in 2009, Pristine offers integrated logistics infrastructure and services across non-container, container, rail and road transportation. It also provides integrated logistics solutions with operations offering warehousing, storage, cargo handling, rail, road transportation and third-party logistics. It is present in five logistics parks such as in the districts of Kanpur (Uttar Pradesh), Ludhiana (Punjab), Siliguri (West Bengal) and Patna (Bihar).
For FY21, Pristine Logistics’ revenue from operations increased 18.68% to Rs 556.9 crore from Rs 469.27 crore during the same period in the preceding year.