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based Snowman Logistics Ltd, the Cold Storage Arm of Gateway Distriparks has
come out with a public issue with a price band of Rs44-47 targetting to raise
between Rs.185-Rs.197 crores.
Issue opens on 26thAugust and closes
shares to be applied is 300 shares and minimum investment should be Rs.13200/-.
COMPANY BACKGROUND :
Company is present across 14 locations and operates 23 Temperature Controlled
Company is proposing to set up facilities in another 6 cities. Snowman operates 370 reefer vehicles for primary
and secondary transportation as of 31st March 2014.
Company is promoted by Gateway Distriparks, which is a big player in Logistics Sector with its
operations in Container Freight Stations at Major Indian Ports. Gateway
Distriparks present holding of 54% will get reduced to 40% post the IPO.
Performance of the company is mixed. While the CAGR is 35% in terms of revenue,
the EPS is a pathetic1.7 due to low
Anchor investors subscribed to 9.45 million shares
at Rs.47 each, the upper end of the price band of Rs.44-47 set for its initial
public offer (IPO) that opens on Tuesday. These anchor investors include
Faering Capital India Evolving Fund which subscribed to 3,492,000 shares, ICICI
Prudential Growth Fund Series 2 which opted for 2,127,900 shares, ICICI
Prudential Value Fund Series 4 which subscribed for 851,100 shares, IDFC
Sterling Equity Fund which subscribed for 2,659,800 shares and IDFC
infrastructure Fund which opted for 319,200 shares.
has rated the IPO at 4/5 which indicates Above Average Fundamentals
is growing at a CAGR of 79%
Corporation holds 12.57% state
of the Revenues is contributed by 20 customers leading to concentration of
clients which may hurt profitability.
dependent on Third party Services Providers
Return on Equity is denting profitability
WHAT OTHERS EXPERTS SAY :
Hindu Businessline says :
an investor who can stomach high risk, the initial public offer (IPO) of
Snowman Logistics presents a good opportunity.
Hem Securities “The issue looks
attractive with strong growth prospects in Cold Chain Industry”
Sharekhan “Snowman Logistics
will benefit from the experience of its promoters. One can subscribe to the IPO”
says : “Tax benefits available to Snowman Logistics Ltd under Sec35Ad will help
SBI Cap Securities says :” We expect the growth to unfold
once the capex cycle for the company is over. We recommend a SUBSCRIBE rating
with a long term perspective considering the EPS growth opportunity awaiting
says “Given the possibility of a shift from the unorganised to organised
segment, we believe, earnings CAGR of 21% over FY14-17E make valuations
attractive for SLL. Consequently, we recommend SUBSCRIBE to the IPO”
says “Considering leadership, unique business model and growing industry we
recommend “Subscribe” to SNOWMAN LOGISTICS IPO”
says “The stock enjoys premium in terms of valuation as
it is the only player in the organized cold storage industry with huge business
potential & its pan India presence. Hence we recommend to SUBSCRIBE to the
this IPO looks pricey, considering the performance parameters and this being
the first IPO from new specialized segment; it is set to reward investors in
medium to long term. It is said to be another Just Dial / Wonderla in the
says “The valuation is reasonable. Prudent to invest a small amount now”
Rakesh-Jhunjhunwala.in has boldly said "Missed Gati & TCI?....You can make up with Snowman Logistics IPO"
SRIKANTH SHANKAR MATRUBAI recommends :
The Company is a leader in the category with virtually NIL competition.
Narendra Modi Govt’s infra push too will help the business of Snowman.
Markets too are in bullish mode. A definite Pop-up on Listing is a given.
of peer listed players will force the Institutions to take exposure in Snowman
as part of Industry exposure resulting in good support for the shares.
retail portion is very small at just 42 lakh shares. I expect a strong listing