We are planning to raise INR 650 crore via IPO: Rakesh Biyani

We are planning to raise INR 650 crore via IPO: Rakesh Biyani

Future Supply Chain Solutions is one of India’s largest organised third-party supply chain and logistics service provider

Future Supply Chain Solutions, one of India’s largest organised third-party supply chain and logistics service provider, offers automated and IT-enabled warehousing, distribution and other logistics solutions to a wide range of customers. Its customers operate in various sectors across India, including retail, fashion and apparel, automotive and engineering, food and beverage, fast-moving consumer goods (FMCG), e-commerce, healthcare, electronics and technology, home and furniture and ATMs. As of July 31, 2017, for the contract logistics services, we run our operations through 42 distribution centres across India, covering approximately 3.80 million square feet of warehouse space and 2 distribution centres at customer premises, covering area of approximately 0.37 million square feet.

Yash Ved of Newsbarons provides you the highlights of a media interaction, where Rakesh Biyani, Chairman and Non-Executive Director informed “We will capitalise on the growth of third-party logistics industry in India and will invest in infrastructure and expand network.”

NB: Brief us about your IPO plans?

Rakesh Biyani: We are planning to raise INR 650 crore via IPO. The company is planning an IPO on Wednesday, December 6, 2017, an initial public offering of up to 9,784,570 equity shares of face value of INR 10 each. The offer closes on Friday, December 8, 2017.
The price band for the offer is fixed from INR 660 to INR 664 per equity share.

The Global Co-ordinators & Book Running Lead Managers to the Offer are Edelweiss Financial Services Limited, CLSA India Private Limited and Nomura Financial Advisory & Securities (India) Private Limited. The Book Running Lead Managers to the Offer are IDFC Bank Limited, IIFL Holdings Limited and YES Securities (India) Limited.

Rakesh Biyani, Chairman and Non-Executive Director,FSCNB: Brief us about your Financials?

Rakesh Biyani: Our Company posted revenues of INR 5,612 mn and a net profit of INR 458 mn at the end of the financial year 2016-17. During the past three years since financial year 2013-14, the revenues from operations of the Company have grown at a compounded annual growth rate (CAGR) of 17%.

Our EBITDA margin and PAT margin has also improved in H1. Our EBITDA margin was at 15%.

NB: What is your revenue mix?

Rakesh Biyani: About 69.8% of our revenue comes from Contracts logistics, 21.76% from express logistics and 6% from Temperature controlled logistics.

NB: What is your business strategy?

Rakesh Biyani: We will capitalise on the growth of third-party logistics industry in India and will invest in infrastructure and expand network. We will also explore inorganic growth opportunities and will continue to improve operational efficiencies.

NB: Brief us about your distribution centres?

Rakesh Biyani: Our distribution centre at MIHAN covers approximately 0.37 million square feet of warehousing space, housing a high-speed cross-belt sorter system, which was the first of its kind in India with a sorting capacity of approximately 2,000 cases per hour.