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Nov 29, 2017 05:10 PM IST | Source: PTI

Future Supply Chain Rs 650 cr IPO to open on December 6, to dilute 24.4% stake

The company has fixed a price band of Rs 655-660 for the issue which will offer up to 9,784,570 equity shares that has a face value of Rs 10 each, and an offer-for-sale of up to 7,827,656 shares or 20 percent equity by Griffin Partners.

Future Supply Chain Solutions, the logistics arm of the Kishore Biyani-led Future Group, today said the promoters and PE investor Griffin will together sell 24.43 percent to raise up to Rs 650 crore through the initial public offer that hits the market on December 6.

The company has fixed a price band of Rs 655-660 for the issue which will offer up to 9,784,570 equity shares that has a face value of Rs 10 each, and an offer-for-sale of up to 7,827,656 shares or 20 percent equity by Griffin Partners.

That apart, the promoters, Future Enterprises, will dilute up to 1,956,914 shares constituting 4.43 percent of equity, through the issue which will close on December 8. The offer constitutes up to 24.43 percent of the post-offer paid up equity share capital, the company said.

Most of the proceeds from the issue will go to the Griffin while the rest of the promoter group, Mayur Toshniwal, manager director Future Supply Chain said.

Griffin Partners held 40 percent in the company and it will offload 20 percent of this stake through the IPO, post which the PE will continue to hold 15.1 percent, Toshniwal said.

In the run-up to the IPO, SSG Capital--the parent of Griffin Partners-- had on November 20 sold 19.63 lakh shares aggregating to 4.9 percent stake to two Edelweiss Group- managed entities--Edelweiss Crossover Opportunities Fund and EW Clover Scheme-at Rs 636.60 a share, according to an earlier exchange filing by the company.

"We opened Future Supply Chain in 2006, and in a decade we've established distribution centres across the country. We offer third-party logistics to non-group companies, and our revenue share from both group and outside are almost equal," Rakesh Biyani, joint managing director at Future Group told reporters.

As of September, the company runs contract logistics operations through 42 distribution centres, hovering around 3.84 million sqft warehouse space and also operates 2 distribution centres for customers, covering 0.37 million sqft warehouse space.

Future Supply Chain had reported Rs 45.7 crore profit in FY17, up from Rs 29.4 crore in the previous year on a revenue of Rs 561.2 crore which rose 9.6 percent over the previous year.
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