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.
Last 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.
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|
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.