In another indication of the changing investor sentiment, the initial public offering of Snowman Logistics that opened for subscription on Tuesday witnessed investor interest of over 61 times the offer size amounting to over Rs 12,000 crore.
Snowman, which is engaged in the business of temperature logistics for perishable goods, came with its IPO to raise Rs 197 crore from the market. The issue that had received an IPO Grade of 4 (above average fundamentals) from Crisil, witnessed strong interest from across investor categories.
While the retail portion of the issue witnessed an oversubscription of over 41 times, the Qualified Institutional Buyers (QIB) category oversubscription stood at 17 times.
The HNI portion was subscribed 221 times. The issue closed for subscription on Thursday.
“We received huge retail investor interest and received over 2.5 lakh retail applications. Even the FIIs have shown a huge interest and a significant portion of the QIB subscription is from FIIs,” said Rakesh Singh, head investment banking at HDFC Bank adding that the company is the leader in temperature logistics and will see growth in line with rise in consumption of dairy, poultry and other perishable products.
The company showed a strong financial performance over the last five years between March 2009 and March 2013. While its revenues grew at a compounded annual growth rate of 37.7 per cent over the last four years, it profits in the same period grew at a CAGR of 112 per cent from Rs 1 crore in March 2009 to Rs 20.5 crore in March 2013.
Gateway Distriparks is the biggest shareholder in the company as it owns 48.33 per cent. The other major shareholders include Mitsubishi Logistics (2.93 per cent), Mitsubishi Corporation (12.63 per cent), International Finance Corporation (12.46 per cent) and Norwest Venture Partners VII-A Mauritius (13.84 per cent).