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The initial public offering of Snowman Logistics, promoted by Gateway Distriparks Ltd, has opens for subscription today.
At 10.15 pm., the IPO received bids for 71,400 shares, all from retail investors. Most of the bids came in at cut-off price. The price band has been fixed at Rs 44-47 per share.
Institutional investors generally bid for shares only during the closing day/hours and, unsurprisingly, this category was yet to receive any subscription.
The public issue closes on August 28.
The company plans to mobilise about Rs 200 crore to meet business expansion plans. The company issues 4.20 crore fresh equity shares with a face value of Rs 10 through a book building process. 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,” Ravi Kannan, Chief Executive Officer, Snowman Logistics, had said at the time of launching IPO roadshows.
“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.
Meanwhile, the stock of Gateway Distriparks was trading flat at Rs 260.45 on the BSE.
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