Industrial warehouse developer and operator IndoSpace, backed by Everstone Capital and the Canada Pension Plan Investment Board, has begun work on its initial public offering (IPO), which could see it raise as much as $1 billion, sources have told Moneycontrol.
IndoSpace recently hired investment banks Citi and Axis Capital to start the work on the public offer and more bankers would be added later, they said.
“The IPO will be a mix of primary and secondary share sale to fund the company’s future pipeline of warehouses as well as provide partial exit to existing investors,” one of the sources cited above said.
A pioneer in the industrial Grade A warehousing sector, IndoSpace has developed more than 60 million square feet of warehousing space in key industrial and metro cities, the source said.
Everstone Capital and IndoSpace declined to comment on Moneycontrol’s query.
Founded in 2007 by PE firm Everstone Capital and Realterm, a transportation industry focused asset manager, IndoSpace has invested over $3 billion to build more than 50 warehousing hubs in 11 cities that serve more than 150 clients across sectors such as manufacturing, electronics, 3PL, e-commerce, retail, and auto.
On July 23, it announced the launch of “IndoSpace Chakan V”, its largest industrial park in the country, which spans 188 acres and is backed by an investment of $120 million. It is the company’s eighth industrial and logistics park in Pune, Maharashtra. IndoSpace has a footprint of 525 acres in the Pune region.
IndoSpace’s plan to tap the market through an IPO comes as warehousing companies, which initially explored the infrastructure investment trust route to monetise assets, are now looking to raise funds through public offers.
“While most warehouse operators were initially planning to monetise assets through InvITs, the investor demand for that structure has not been as strong as what companies were hoping for. So while we have seen a couple of warehouse InvITs being launched in the past 12-18 months, the bigger operators like IndoSpace and Blackstone have switched their strategy in favour of IPOs,” said a second source.
According to reports, Blackstone is also working on the IPO of its warehouse platform, Horizon Industrial Parks, to raise over $1 billion.
Bahrain-based asset manager Investcorp-backed NDR Warehousing was the first to launch a warehousing InvIT in India, raising Rs 880 crore in February 2024.
Earlier this month, TVS Logistics-sponsored TVS Infrastructure Trust raised Rs 1,300 crore through its private placement offering. TVS Infrastructure Trust has a portfolio of 11 million square feet of warehousing assets valued at around Rs 3,000 crore.
No other warehousing InvIT has filed draft documents with the market regulator, indicating a drop in interest for such issuances.
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