Abu Dhabi SWF among anchors in Navkar IPO

Abu Dhabi Investment Authority, one of the sovereign wealth funds of UAE representing the emirate of Abu Dhabi, is among the anchor investors that have together invested Rs 173 crore in Raigad-based logistics company Navkar Corporation Ltd, as part of an initial public offer (IPO) of the company.

Navkar Corporation, which provides container freight station services and trading activities, allocated 11.6 million equity shares to a total of 15 anchor investors at a share price of Rs 155 equity share.

The anchor investors included Morgan Stanley Mauritius Company, Ashburton India Equity Opportunities Ltd, Nomura Singapore, IDFC Fund, HDFC Infrastructure Fund, Franklin India Smaller Companies Fund, Prime India Opportunity Fund and Amundi Funds, among others.

Abu Dhabi Investment Authority, which has been active in the public equities space in India, put in around Rs 16 crore as part of the anchor allotment.

Navkar Corporation is looking to raise Rs 600 crore, comprising fresh issue of equity shares aggregating to Rs 510 crore ($82 million) and offer for sale of Rs 90 crore ($14 million) by the selling shareholder namely Sidhhartha Corporation Pvt Ltd, a member of the promoter group, through the IPO.

Given the anchor allotment, the firm's public issue is now worth around Rs 442 crore. The IPO opened to a slow response with just around 14 per cent of the issue picked on Monday. This was expected given the mayhem in the secondary market with the benchmark indices losing almost 6 per cent in a day.

Founded in 1983, Navkar Corporation is promoted by Shantilal Jayavantraj Mehta and Nemichand Jayavantraj Mehta.

The company’s services include packing, labelling/bar-coding, palletising, fumigation and other related activities at warehouses.

As of December 31, 2014, Navkar Corporation had an aggregate installed handling capacity of 310,000 TEUs (twenty-foot equivalent units) per annum on the basis of its infrastructure and operating equipment.

The logistics company works with shipping lines and customs house agents like United Arab Shipping Agency Company (India) Pvt Ltd, NYK Line (India) Ltd, Hyundai Merchant Marine India Pvt Ltd, Evergreen Shipping Agency (India) Pvt Ltd and S Ramdas Pragji Forwarders Pvt Ltd.

Axis Capital, Edelweiss and SBI Capital are managing the issue.

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