IVFA-controlled Inlogistics hires banker for fresh PE deal

Innovative B2B Logistics Pvt. Ltd, which runs private container trains and offers warehousing services and operates under the banner of Inlogistics, is looking to raise fresh round of private equity funding and its existing investor India Value Fund Advisors (IVFA) will participate in the round.

Vishal Nevatia, managing director of IVFA, told VCCircle: "The transaction has just been launched and IVFA plans to retain a majority stake in the firm post the transaction.

Inlogistics has hired Ambit Capital as an investment banker to raise around Rs 200 crore ($30 million) from new investors.

IVFA had picked up 57.94% stake in the Gurgaon headquartered private logistics firm in 2009 for $33.9 million, according to VCCEdge, the data research platform of News Corp VCCircle.

Mint that first reported the development said the latest round of fund-raising will help the company to add more cargo rakes to its inventory and to expand the number of cargo terminals it operates, citing Nevatia.

The firm reported a turnover of Rs 240 crore in 2014-15, as per VCCEdge.

According to the firm’s website, Inlogistics operates fifteen container trains and a rail terminal at Kalamboli near Jawaharlal Nehru Port Trust (JNPT) in Mumbai and has at least 1,380 containers.

The broader logistics segment has been a hit space for investors over the last decade.

In August, Warburg Pincus invested in a logistics platform backing former Future Supply Chain CEO Anshuman Singh to provide “multi-user warehousing, distribution, e-fulfilment and cold storage facilities to companies in the food and beverages, consumer goods, consumer durables, electronics, lifestyle, automotive, pharmaceuticals and engineering industries”. Warburg Pincus has previously also invested in e-commerce logistics firm Ecom Express  among others.

In April 2016, Singapore's distressed assets fund management firm SSG Capital Management Group put in Rs 580 crore ($87 million) to acquire 40% stake in Future Supply Chain Solutions Ltd (FSC) Several logistics companies have also tapped the public markets.

These include Abraaj Capital- and Warburg Pincus-backed Continental Warehousing and Seaways Shipping & Logistics that have filed documents for their public listing.

In the last two years, Snowman Logistics and VRS Logistics have gone public.

* This article has been updated to include comments from IVFA's Managing Director.

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