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Future Supply Chain Solutions, the subsidiary of BSE-listed Future Enterprises, plans to raise about ₹750 crore through an offer-for-sale. The company has filed draft red herring prospectus with capital market regulator SEBI for a public issue of up to about 97.84 lakh equity shares representing 25 per cent of the existing paid-up equity share capital of Future Supply Chain Solutions (FSCSL) for cash.
Selling shareholdersThe promoter company Future Enterprises will offload about 19.57 lakh shares of FSCSL representing up to 5 per cent of the paid-up equity share capital of FSCSL.
The other participating shareholder Mauritius-based Griffin Partners will sell about 78.28 lakh equity shares in FSCSL representing up to 20 per cent of the paid-up equity share capital of the company.
The company is one of the largest organised third-party logistics service operators offering automated and IT-enabled warehousing, distribution and other logistics solutions to a wide range of customers including retail, fashion and apparel, automotive and engineering, food and beverages, fast-moving consumer goods, e-commerce, healthcare, electronics and ATMs across India.
The company provides solutions that enable customers to leverage their distribution network and optimise their performance, cost and efficiency of their supply chains by shortening the lead-time to market.
It gives customers services in three key areas, including contract logistics which includes warehousing, distribution and other value-added services while express logistics provides point-to-point and time-definite transportation services and less-than truck-load transportation services. It also transports perishable products through temperature-controlled logistics and cold-chain warehousing. The company expects to benefit from the ‘Make in India’ initiative launched by the government to make India a global manufacturing hub.
The initiative aims to raise the GDP contribution of manufacturing to 25 per cent from the current 16 per cent by targeting 25 sectors including auto, construction, electronics, oil and gas, pharma, and textiles, said the company’s DRHP.
The company hopes to benefit from 15-20 per cent growth in organised retail till fiscal 2022, driven by rising income of consumers, urbanisation, nuclearisation of families and evolving buying patterns.
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