Logistics company Navkar Corporation files for $96M IPO

Raigad-based logistics company Navkar Corporation Ltd, which provides container freight station services and trading activities, has filed its draft red herring prospectus (DRHP) with securities market regulator SEBI to float its initial public offer (IPO).

The proposed public issue comprises fresh issue worth Rs 510 crore ($82 million) besides an offer for sale of Rs 90 crore ($14 million) from its promoters.

This makes it the second logistics company queuing up for a public float after agri commodities-focused supply chain firm Shree Shubham Logistics Ltd, which filed its DRHP in February.

Other companies joining the IPO queue this year include Amar Ujala, SSIPL Retail, AGS Transact Technologies, S.H. Kelkar & Co and Pennar Engineered Building Systems.

Last year another logistics firm Snowman Logistics had a bumper listing with 59x oversubscription. Its share price almost doubled since its debut on the bourses last September.

Here's a snapshot of the IPO

* Total issue comprises fresh issue of shares to raise up to Rs 600 crore in addition to an offer for sale of up to 90 crore by Sidhhartha Corporation.

* Bankers: Axis Capital, Edelweiss and SBI Capital.

Use of proceeds

* Of the proceeds of the fresh issue, it would use around Rs 315 crore for establishment of a logistics park at Valsad (near Vapi), Rs 115 crore for capacity enhancement of the Somatane CFS (container freight station) and up to Rs 55 crore for development of the non-notified areas of its CFS.


* Founded in 1983, Navkar Corporation is a CFS operator having three units—Ajivali CFS I and Ajivali CFS II at Ajivali and Somatane CFS at Somatane.

* It 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.


* For the six months ended September 30, 2014, it had total revenues of Rs 161.5 crore with net profit of Rs 40.3 crore. For the financial year ended March 31, 2014, the company posted total revenues of Rs 370.2 crore and a PAT of Rs 90 crore.

(Edited by Joby Puthuparampil Johnson)

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