Snowman Logistics IPO oversubscribed 60 times

Moneycontrol Bureau

The initial public offer of Snowman Logistics, an integrated temperature-controlled logistics services provider, has seen overwhelming response from investors, oversubscribing 59.75 times – the largest IPO subscription in the current decade.

The issue has received more than Rs 9100 crore worth of bids as against the actual size of Rs 153 crore (at higher end of price band of Rs 44-47 and excluding anchor investors' portion) supported by all types of investors. Total bids received were 194.5 crore equity shares as against issue size of 3.25 crore shares (excluding anchor investors’ portion of 95 lakh shares).

Reserved portion of non-institutional investors got subscribed 221.79 times with the bids for 139.7 crore shares versus reserved portion of 63 lakh shares. Retail investors gave thumbs up to the issue with the subscription of 41.26 times, putting bids for 17.3 crore shares as against reserved portion of 42 lakh shares.

Qualified institutional buyers applied for 37.4 crore shares, which was 16.98 times compared to their reserved portion of 2.2 crore shares.

Earlier on Monday, Snowman already mopped up Rs 44.4 crore from three anchor investors, which were Faering Capital India Evolving Fund, ICICI Prudential and IDFC Funds.

The largest cold chain solutions provider intends to use issue proceeds for setting up new temperature controlled and ambient warehouses, and long term working capital.

The company, which operates 23 temperature-controlled warehouses across 14 locations in India (including Kolkata, Mumbai, Delhi, Chennai and Bengaluru), has proposed to set up another such 6 and 2 ambient warehouses at 6 cities at the cost of around Rs 140 crore.

Posted by Sunil Shankar Matkar