ColdEX files DRHP with SEBI, SABR seeks partial exit

Gurugram-based food supply chain and distribution player ColdEX Limited has filed its draft prospectus with SEBI seeking regulatory permission to launch IPO. ColdEX IPO will offer an exit to existing investors apart from raising funds for core operations of the company.

Through its almost three year old investment, SABR India Investment holds 3,764,358 shares or 41.83% equity stake in ColdEX Limited. By participating in the ColdEX IPO through the Offer For Sale (OFS), SABR India Investment plans to offload 1,656,408 shares. Pantomath Capital Advisors Private Limited is the Book Running Lead Managers to the issue.

ColdEX IPO: Use of funds

In addition to the OFS, ColdEX IPO will involve sale of 1,010,000 equity shares. While the company has not disclosed the amount of funds it plans to raise, the prospectus mentioned that funds will be used towards (i) Investment in IT Infrastructure (INR79.98 million or INR8 crore); (ii) Funding the working capital requirements of subsidiary Coldex Logistics Private Limited (INR20 crore); (iii) Acquisitions and other strategic initiatives (INR15 crore); and (iv) General corporate purposes.

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ColdEX IPO: Temperature-controlled logistics

ColdEx claims to be India’s largest organized integrated food supply chain and distribution company with service offerings spanning surface logistics and warehousing infrastructure, pan-India distribution network, and modern technology. The company caters to a wide range of industry sectors and business segments including food service market, FMCG, confectionary, dairy and retail.

Promoted by Mr Gaurav Jain and Mrs Santosh Jain, the company started business in 1999 in Gwalior, Madhya Pradesh and launched ColdEX brand in 2005 to provide temperature-controlled logistics services to various industries. This was followed by a temperature-controlled warehouse in Kundli (Delhi NCR) in 2014, making the company an integrated temperature-controlled food supply chain and distribution player.

As on 30 June 2018, the company caters to more than 40 clients including Cadbury, Mars, Yum! Brands, Burger King, McDonalds, Nestle, Starbucks, Kraft Heinz, Hindustan Unilever, Britannia etc. The company has received two rounds of private equity investment: the first from India Equity Partners in 2010, and recently from Sabr India Investment Pvt Ltd in 2016.

For the year ended 31 March 2018, the company swung to a profit of INR3.14 crore as revenues jumped 15% to INR264.2 crore.

ColdEX files DRHP with SEBI, SABR seeks partial exit
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Krishna Bagra

Coming from a family of investors and financial analysts, Krishna learnt wading through regulatory filings pretty early in her career. At IPO Central, Krishna plays twin roles of contributor and head of research desk. She can also be reached at +krishnabagra .

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