Navkar Corporation IPO subscribed 13.7% on day one

The initial public offering (IPO) of logistics player Navkar Corporation was subscribed 13.7% on the first day of bidding. According to combined data available from NSE and BSE, the Raigad-based container freight station (CFS) operator attracted bids for 39 lakh shares. A total of 2.85 crore shares are on offer by the company in the net offer, excluding the anchor investor portion.

Navkar CorporationLast Friday, Navkar Corporation raised INR180 crore by placing 1.16 crore shares with a clutch of anchor investors. The company attracted some prominent names including Abudhabi Investment Authority, Morgan Stanley Investment Mauritius, and Nomura as anchor investors. In total, Navkar Corporation plans to mobilize INR600 crore through the IPO which is priced between INR147 per share and INR155 per share.

Read Also: IPO Review: Navkar Corporation IPO extends logistics play

Maximum subscription was seen in the Qualified Institutional Buyers (QIBs) quota where investors bid for 15.33 lakh shares against 81.63 lakh shares available. This resulted in the subscription of 18.8% in the category. Retail investors also showed interest in the IPO and bid for 22.71 lakh shares, resulting in 15.9% subscription. A total of 1.42 crore shares are reserved for investors with application amount of less than INR2 lakh.

Staying away from the IPO were non institutional investors, as indicated by the subscription of just 96,330 share or 1.6% in the category on the first day. However, it is not surprising as NII typically bid on the last day of IPOs.

Navkar Corporation IPO Bidding (as on 24 August 2015)

Sr.No. Category No. of shares offered No. of shares bid for % subscription
1 Qualified Institutional Buyers (QIBs) 8163266 1533680 18.8
2 Non Institutional Investors 6122449 96330 1.6
3 Retail Individual Investors (RIIs) 14285714 2271165 15.9
Total 28571429 3901175 13.7

The company operates through three CFS units – Ajivali CFS I and Ajivali CFS II at Ajivali and Somathane CFS at Somathane – all the three units are located in Panvel, Maharashtra, in close proximity to the Jawaharlal Nehru Port – India’s largest container port. As of December 2014, Navkar Corporation’s aggregate installed handling capacity stood at 310,000 TEUs (twenty-foot equivalent units) per annum. The company has a private railway freight terminal which allows it to load and unload cargo from container trains operating between the Somathane unit and the port. In addition, it owns and operates 461 trailers for the transportation of cargo between its units and the port by road. Navkar Corporation works with shipping lines, logistical service providers and customs house agents, importers and exporters. Apart from the clients mentioned above, it counts Hyundai Merchant Marine and Evergreen Shipping Agency among its prominent customers.

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Anurag Gupta

With a profound experience in the finance field, Anurag also has years of experience in writing about different domains including finance and technology. He used to write for different content portals along with his association with IPO Central as a frequent contributor. His financial analyst’s background supports his writing and help him to get aware about different news’ of finance world.

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