Investcorp-backed NDR Warehousing files draft InvIT papers to raise around Rs 1,100 crore; first by a warehousing co

The agreement was signed by Amara Raja Electronics Director Vikramadithya Gourineni and Dr Suresh Nair, the founder of Design Alpha.

Leading logistics solutions provider NDR Warehousing, which is backed by Bahrain's Investcorp, has filed draft papers with Sebi to raise approximately Rs 1,100 crore  via the InvIT or infrastructure investment trust route, multiple industry sources with knowledge of the matter told Moneycontrol.

If plans fructify, in terms of an asset class, this would be India Inc's first ever InvIT listing by a warehousing company. To be sure, TVS Logistics and Industrial Parks is also weighing a capital raise via the InvIT route.

"Yes, the filing of the draft documents has been done with the market regulator. This will be a privately listed InvIT," said one of the persons above.

A second person told Moneycontrol that the proceeds of the InvIT would be used to repay debt and fund construction of new projects.

This person added, "The plan is to launch the proposed InvIT in the current financial year and a final call on the timing will be taken based on market conditions and the nod from Sebi."

A third person also confirmed the filing of draft papers by NDR Warehousing.

"ICICI Securities is the investment bank on the deal. Cyril Amarchand Mangaldas and Shardul Amarchand Mangaldas are the legal advisors," the third person elaborated.

All the three persons above spoke to Moneycontrol on the condition of anonymity.

Moneycontrol is awaiting the response to an email query sent to NDR Warehousing. This article will be updated as soon as we hear from the firm. Moneycontrol could not elicit an immediate response from the deal advisors.

A PEEK INTO THE NDR WAREHOUSE!

According to its website, NDR Warehousing has a portfolio of more than 14 million square feet with 50 plus warehouses and 21 plus industrial parks. It has 6 million square feet of upcoming projects and its clients range from Amazon, Flipkart and FedEx to Reliance Trends, Pepsi and Godrej, according to the website.

Recently, the firm announced the acquisition of LSA Warehousing Private Limited, located in Sohna, Haryana.

NDR Group was established in the year 1954 by Naidu Dasaradha Rami Reddy, a first-generation entrepreneur and the group started its 3PL (third party logistics) business in 1960. Currently, N Adikesavulu Reddy, son of Dasaradha Rami Reddy serves as the Chairman of NDR Group. NDR Warehousing Pvt Ltd, incorporated in 1986 and part of NDR group is currently managed by N Amrutesh Reddy, grandson of the promoter and his wife N Srithi.

As per a July 2022 report by Care Ratings, the NDR group earlier had control over Continental Warehousing Corporation (Nhava Sheva) Ltd (CWSNL), an integrated multimodal logistics player, providing cargo handling facilities, express logistics and 3PL services including warehousing and bulk transportation business before selling it to DP World and National Investment and Infrastructure Fund (NIIF) in the year 2018. As on March 31, 2022, N. Amrutesh Reddy held 9 per cent in Continental Warehousing Corporation (Nhava Seva) Private Limited.

Bahrain-based Investcorp, a global investment manager specializing in alternative investments, said it has led a $55 million (around Rs 411.45 crore) investment in NDR Warehousing in February 2022.

THE INVIT & WAREHOUSING WAVE

On April 3, IRB Infrastructure Trust (road and highway assets) became the first private placed InvIT to get listed on the NSE. Other InvIT's like Powergrid Infrastructure Investmment Trust are present in segments like power transmission.

Referring to the buoyancy in the segment, Prateek Jhawar, MD & Head (Infrastructure & Real Assets), Avendus Capital said, "Warehousing globally has proven to be a resilient asset class and India offers a high growth market with large capital deployment opportunity (US$ ~1 Bn annually) to global investors. Prologis, HillHouse, Gaw Capital and Panattoni are few of the developers/ investors entering the market. Financial Investors such as CPPIB, GIC, Blackstone are also committing a larger amount of capital."

Jhawar added, "Strong macros, huge demand from high growth sectors like e-commerce, 3PL and manufacturing and continued government support is expected to keep attracting larger investments and newer investors to the Indian warehousing sector."

On May 19, 2023, Asheesh Mohta, Senior MD and Head of Real Estate Acquisitions (India), Blackstone told Moneycontrol in an interview that logistics and data centers are high conviction themes for the private equity major.