Shares of Future Supply Chain Solutions, the logistics arm of the Future Group, will list on the bourses on Monday.
The initial public offering of the company was oversubscribed 7.56 times. The issue was open for subscription from December 5 to December 8.
The quota set aside for qualified institutional buyers (QIBs) was oversubscribed 12.36 times, high net worth individuals 11.15 times and retail investors 3.17 times.
The IPO received nearly 4 lakh applications.
Incorporated in 2006 and promoted by Kishore Biyani, Future Supply Chain Solutions is one of the India’s largest organised 3PL Service Operators. The company offers automated and IT-enabled warehousing, distribution and other logistics solutions to a wide range of customers.
The company had fixed a price band of Rs 660-664 per share. Future Supply Chain Solutions had raised Rs 195 crore from anchor investors.
On clientele basis, Future group contributed around 70 per cent of H1FY18 revenue. Apart from the promoter group the customer base includes Pepe Jeans India, Clarks Future Footwear, Surya Roshni and TTK Prestige etc.
Most of the brokerages had given subscribe rating to the issue. Over, FY13- FY17 the company sales have grown at a CAGR of 12.2 per cent whereas over FY12-17 logistics sector has grown at a CAGR of 12 per cent.
Operating margins of the company for FY17 stands at 13.2 per cent which has been improved to 15.7 per cent in H1FY18. This improvement was due to volume growth, renewed management strategy to focus on clients with lower receivable days in the express business.
Management expects margins to improve going ahead mainly due to higher volume and turnaround in cold storage business.
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