Raigad-based logistics firm Navkar Corporation will launch its IPO on 24 August. The company has submitted its red herring prospectus (RHP) with the capital market regulator Securities and Exchange Board of India (SEBI). The company has not disclosed how many shares it plans to sell and at what price. Details regarding pricing will be made available close to launch date. Navkar IPO will remain open till 26 August.
Axis Capital Limited, Edelweiss Financial Services Limited, and SBI Capital Markets Limited are the book running lead managers of the issue while Link Intime is the registrar.
The INR600 crore IPO would comprise a fresh issue of shares worth INR510 crore as well as an offer of sale (OFS) from Sidhhartha Corporation worth INR90 crore.
Promoter Shantilal Jayavantraj Mehta and Nemichand Jayavantraj Mehta directly hold 7.92 crore or 72.19% of the company’s issued share capital while the rest is with promoter group. Sidhhartha Corporation is a prominent party in promoter group with a total of 80.9 lakh shares or 7.38% stake.
Use of funds
Navkar plans to use IPO proceeds towards capacity enhancement of its Somathane container freight station (CFS), development of the non-notified areas of CFSs and establishment of a logistics park at Valsad in Gujarat. Out of the INR510 crore through the sale of new shares, INR314.56 crore will go towards the new logistics park at Valsad, near Vapi. Nearly INR144.53 crore will be used to expand capacity of Somathane CFS facility while another INR54.25 crore will be used to develop certain non-notified areas near its three CFSs in Panvel for additional parking facilities and drive-ways which is expected to increase its container handling capacity. The remaining amount will be used towards general corporate purposes.
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 India’s largest container port the Jawaharlal Nehru 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.