India: Biyani firm Future Supply Chain files IPO papers, to raise $109.2m

Kishore Biyani (Livemint)

Future Supply Chain Solutions Ltd, the logistics arm of Kishore Biyani-led Future Group, on Thursday filed the draft prospectus for its initial public offering (IPO).

The share sale, a pure offer for sale, will see Future Supply Chain’s promoter group Future Enterprises Ltd and private equity investor SSG Capital Management sell a total of 9.78 million shares, according to the draft red herring prospectus (DRHP) available on the website of one of the investment banks managing the share sale.

The share sale is expected to be worth around Rs700 crore, said two people aware of the development.

SSG Capital plans to sell around 7.82 million shares, while the Futures Enterprises Ltd is selling around 1.95 million shares. In April 2016, SSG Capital Management Ltd acquired a 40% stake in Future Supply Chain for Rs580 crore. The transaction valued the company at Rs1,450 crore.

Future Supply Chain, incorporated in April 2007, offers warehousing, distribution and other logistics solutions to customers across industries such as retail, fashion and apparel, automotive and engineering, food and beverage, fast-moving consumer goods, e-commerce, healthcare, electronics and technology, home and furniture and ATMs.

As of 31 July, the company operates 42 distribution centres across India, covering approximately 3.80 million square feet of warehouse space. It uses a hub-and-spoke distribution model comprising 14 hubs and 105 branches across India (including franchisees) covering 11,228 pin codes across 29 states and five union territories.

In fiscal 2017, Future Supply Chain reported a revenue of Rs561.18 crore as compared to a revenue of Rs519.87 crore in the previous year. It reported a profit of Rs45.7 crore in fiscal 2017, as against a profit of Rs29.4 crore in the previous year.

The logistics company has hired Edelweiss Financial Services Ltd, CLSA India Pvt. Ltd, Nomura Financial Advisory & Securities (India) Pvt. Ltd, IDFC Bank Ltd, IIFL Holdings Ltd, YES Securities (India) Ltd to manage the public offering.

Earlier this month, Mahindra Logistics Ltd, the logistics arm of the Mahindra and Mahindra Ltd filed DRHP for its IPO. M&M is planning to sell 9.66 million shares, while other shareholders Normandy Holdings Ltd and Kedaara Capital Alternative Investment Fund – Kedaara Capital AIF I are selling 9.27 million and 0.39 million shares respectively.

Another logistics firms that is seeking to go public and has filed its draft IPO papers is Warburg Pincus-backed Continental Warehousing (Nhava Seva) Ltd.

Logistics companies that went public in the recent past include cold chain firm Snowman Logistics Ltd that went public in 2014 and Navkar Corp. Ltd, which operates container freight stations, which went public in 2015.

Also read:

India: Biyani’s Future Groups inks JV with UK wholesaler Booker Group

This story was first published on Livemint

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.