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India’s Largest Logistics Developer Hits Street With ₹2,600-Crore IPO

Prime Highlights 

  • Horizon Industrial Parks aims to raise ₹2,600 crore entirely via fresh shares, with ₹2,250 crore earmarked for debt repayment.  
  • Anchor investors, including Morgan Stanley and Citigroup Global, committed ₹1,167.8 crore ahead of the IPO opening.  

Key Facts 

  • Horizon Industrial Parks is India’s largest industrial and logistics infrastructure developer by total network area, per a JLL report.  
  • The company operates 45 assets across 10 cities, spanning 58.58 million square feet with 93.6% occupancy.  

Background 

Blackstone-backed Horizon Industrial Parks has opened its ₹2,600-crore initial public offering for subscription in the third week of August, with the issue set to close a few days later in the same week. The company has fixed the price band at ₹57-60 per share, with a lot size of 250 equity shares for retail investors. In the upper price band, the minimum retail investment is ₹15,000. 

Ahead of the opening, the company raised ₹1,167.8 crore from 54 anchor investors, including Morgan Stanley, Carmignac, Millennium Management, Societe Generale, Citigroup Global and Viridian Asset Management. Domestic mutual funds such as WhiteOak Capital, Sundaram Mutual Fund, 360 ONE, PGIM India, JM Financial and Edelweiss received 3.88 crore shares through 27 schemes. At the same time, SBI Life Insurance and Edelweiss Life Insurance together secured 1.24 crore shares worth ₹75 crore. 

The issue is entirely a fresh share sale with no offer-for-sale component. QIBs have been allotted 75% of the issue, NIIs 15% and retail investors 10%. Of the total proceeds, ₹2,250 crore will go towards repaying or prepaying debt, which stood at ₹6,884.34 crore as of the end of the last financial year. 

Horizon Industrial Parks develops and operates warehouses, fulfilment centres and industrial facilities, with 45 assets across 10 cities covering 58.58 million square feet and occupancy of 93.6%. Three Blackstone affiliates together hold an 88.74% stake, which will reduce after listing. 

Allotment is expected in the fourth week of August, with listing to follow soon after.

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