Snowman Logistics surges 68% on listing day

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Moneycontrol Bureau

Snowman Logistics has seen huge buying appetite on listing day itself, beginning the trade at Rs 75 (the equilibrium price arrived in pre-opening session) on the Bombay Stock Exchange. That is 60 percent returns for investors over the issue price of Rs 47, which is more than grey market premium of 25-30 percent premium.

It means the person, who has applied for 300 shares (the minimum bid quantity) by paying Rs 14100, received a whopping profit of Rs 8400 on day one (Rs 28 per share premium over issue price).

The hunger does not seem to end there with pending buy orders of 1,399,831 shares, no sellers available at 10:42 hours IST.

The stock was quoting at Rs 78.75 (the highest level in today's trade), up Rs 31.75, or 67.55 percent on the BSE. The current market capitalisation of the company stands at Rs 1,310 crore. Its public issue had received excellent response from investors, oversubscribing 59.75 times supported by retail subscription with 41.26 times, non-institutional investors with 221.79 times and qualified institutional buyers with 16.98 times.

The largest cold chain solutions provider raised Rs 197.4 crore through the issue that amount will be used for setting up new temperature controlled and ambient warehouses, and long term working capital.

Snowman Logistics, which had reported 40-50 percent CAGR in topline and bottomline in previous four financial years, will maintain growth achieved in last few years, said Ravi Kannan, Director and CEO, adding he is confident of stable growth going forward

"We have a clear visibility of our expansion. We are looking to expand to Tier-II and Tier-III cities," he added.

It has a pan-India presence with warehousing capacity of 58,543 pallets and 3,000 ambient pallets, which is expected to increase to 85,000 pellets in current financial year (FY15) and further to 1 lakh pellets by FY16.

Kannan said the company will add 35 percent to capacity even for FY15.

Parent company Gateway Distriparks, which holds 40 percent stake in Snowman, was quoting at Rs 273.10, up Rs 3.60, or 1.34 percent after hitting a 52-week high of Rs 278.90.

Posted by Sunil Shankar Matkar