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Last Updated : Aug 27, 2014 10:53 AM IST | Source: Moneycontrol.com

Snowman Logistics IPO subscribed 83% on Day 1

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.

 
 
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Moneycontrol Bureau


The 4.2 crore shares initial public offer of Snowman Logistics (SLL), the cold chain solutions provider, has received good response, subscribing 0.83 times on Tuesday, the first day, supported majorly by retail investors.


The issue, which will close on August 28, has got bids for 2.71 crore shares as against issue size of 3.25 crore shares (excluding anchor investors’ portion).


The reserved portion of retail investors subscribed 2.7 times followed by qualified institutional buyers with 0.62 times and non-institutional investors with 0.34 times.


SLL already received Rs 44.4 crore (out of Rs 197 crore at higher end of price band) through three anchor investors on Monday. Faering Capital India Evolving Fund, ICICI Prudential and IDFC Funds will get 94.5 lakh shares at higher end of price band of Rs 44-47 per share.


Also read: Snowman Logistics IPO opens: Should you subscribe?


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), proposes to set up another such 6 and 2 ambient warehouses at 6 cities at the cost of around Rs 140 crore.


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


HDFC Bank is the book running lead manager to the issue while Link Intime India Private Limited is the registrar.

Posted by Sunil Shankar Matkar

First Published on Aug 26, 2014 05:40 pm
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