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Integrated temperature controlled logistics service provider Snowman Logistics’ initial public offering of 4.2 crore shares will open on August 26 and close on August 28.
The company has fixed a price band between Rs 44 and Rs 47 per share.
The issue constitutes 25.23 per cent of the post-issue equity share capital of the company and is being made under regulation 26(2) of SEBI’s regulations.
Issues under this regulation have a qualified institutional buyer portion of 75 per cent, high net worth individual portion of 15 per cent and retail portion of 10 per cent.
The minimum bid is 300 shares and in multiples of 300 thereafter. The shares would be listed on the BSE and NSE. Rating agency CRISIL has rated the IPO as 4/5, indicating above average fundamentals. The book running lead manager is HDFC Bank and the registrar is Link Intime.
The company plans to deploy Rs 128.28 crore for setting up six temperature controlled warehouses at Mumbai, Pune, Chennai (two in number), Cuttack and Vishakapatnam besides two ambient warehouses in Surat and Pune.
Rs 8.41 crore would be deployed as long term working capital.
Promoted by Gateway Distriparks Ltd, Snowman Logistics Ltd. is in the business of cold chains - warehousing and distribution of dairy products including butter and cheese; ice-cream; ready-to-eat/ready-to-cook food products; confectioneries including chocolate and baked products; fruits and vegetables; healthcare and pharmaceutical products; and industrial products such as X-ray and photo-imaging, films.
The business operates between the temperatures of plus 20 degrees centigrade to minus 25 degrees centigrade.
Prominent customers include Hindustan Unilever, McCain Foods India, Graviss Foods, Tamil Nadu Cooperative Milk Producers Federation, Indian Immunologicals, Karnataka Cooperative Milk Producers Federation and Ferrero India.
The company’s operations comprise 23 temperature controlled warehouses across 14 locations across India.
Mitsubishi Corporation, Mitsubishi Logistics Corporation, International Finance Corporation and Norwest Venture Partners VII-A Mauritius are shareholders in the company.
For FY14, the company booked a revenue of Rs 153.4 crore and a net profit of Rs 23.22 crore.
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