Snowman Logistics, promoted by Gateway Distriparks Ltd., is coming out with an initial public offer (IPO) to mobilise about Rs.200 crore to meet business expansion plans. The company will issue 4.20 crore fresh equity shares with a face value of Rs.10 through a book building process.
The issue will open on August 26 and close on August 28.
The price band has been fixed at Rs.44-47 per share. The issue will constitute 25.23 per cent of the post-issue paid-up equity share capital of the company.
Bids can be made for a minimum of 300 equity shares and in multiples of 300 equity shares thereafter. The issue has been graded by Crisil as 4/5, indicating the fundamentals of the issue are above average.
“We have 23 warehouses in 14 locations and will add six more. The funds mobilised from this issue will mainly go for expansion purposes. We are primarily into temperature control business. Our warehousing solutions cover the complete spectrum of temperature ranges from ambient to chilled and frozen (i.e. +20ºC to -25ºC),” Ravi Kannan, Chief Executive Officer, Snowman Logistics, said.
“Our Source to Stores operations comprise warehousing, primary distribution, secondary distribution and value-added services, including kitting, labelling, sorting and bulk breaking. We have 370 temperature controlled trucks to provide end-to-end solutions,” he added.
Last year, the company reported a turnover of Rs.150 crore. Its shareholders include Gateway Distriparks (54 per cent), Mitsubishi Corporation and Mitsubishi Logistics Corporation (15.5 per cent), International Finance Corporation (12 per cent), Norwest Venture Partners (14 per cent) and balance by others.
The product segments it caters to include dairy products, ice-cream, ready-to-eat/ready-to-cook food products, confectioneries, fruits and vegetables, healthcare and pharmaceutical products, and industrial products such as X-ray and photo-imaging, films.
HDFC Bank is the issue’s book running lead manager and the shares will be listed on the BSE and NSE.
