Delhi-based Pristine Logistics & Infraprojects Limited ("The Company"), one of India's major multi-modal integrated logistics providers, focusing on rail transportation networks for infrastructure and services, has filed its Draft Red Herring Prospectus (DRHP) with the markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO) with a fresh issue of Rs 250 crore and Offer-for-sale of up to 20,066,269 equity shares.
The issue has a face value of Rs 5 per equity share for the proposed share sale. The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders.
The Offer for Sale comprises up to 17,779,067 equity shares by India Infrastructure Fund II ("Investor Selling Shareholders") and up to 600,000 equity shares by Amit Kumar, up to 652,175 equity shares by Sanjay Marwar, up to 652,175 equity shares by Rajnish Kumar, up to 96,500 equity shares by Durgesh Govil, up to 52,175 equity shares by Jyoti Kumar, up to 136,500 equity shares by Renu Govil, up to 69,177 equity shares by Ankur Govil, up to 25,000 equity shares by Anju Singh and up to 3,500 equity shares by Mohammad Athar Shams.
Additionally, the company, in consultation with the lead bankers to the issue may consider a Pre-IPO placement of equity shares aggregating up to Rs 50 crore. If such placement is completed, the fresh issue size will be reduced.
The proceeds from its fresh issuance worth Rs. 175 crore will be utilised for the repayment or prepayment of borrowings, in full or part of all or certain borrowings availed by its subsidiaries and general corporate purposes.
The Delhi-based company offers integrated logistics infrastructure and services across the board, including non-container, container, rail, and road transportation. It is an integrated logistics solution provider with operations on both the western and eastern coastlines of India, offering warehousing, storage, and cargo handling, rail transportation, road transportation, and third-party logistics ("3PL") services.
It currently operates five logistics parks in the districts of Kanpur (Uttar Pradesh), Ludhiana (Punjab), Siliguri (West Bengal), and Patna (Bihar), which include a rail-linked logistics park with Private Freight Terminals (PFTs), Inland Container Depots (ICDs), and one dry port operated through subsidiaries in Birgunj (Nepal) that is authorised to handle both containers and cargo carried on Indian railway waggons.
Between Fiscal years 2010 and 2021, the installed capacity of ICDs and PFTs has expanded from 108,000 twenty-foot equivalent unit (TEU) to 648,000 TEU since the opening of Pristine's first port in Kanpur in 2010.
Container Corporation of India Limited and Gateway Distriparks Limited are two of Pristine's listed competitors. CONCOR, Adani Logistics Limited, GRFL, and DP World compete in the PFT market, whereas CONCOR, Adani Logistics Limited, GRFL, Hind Terminals Private Limited, and DP World compete in the CTO market.
Logistics is an important aspect of any country's economy, since it ensures the efficient and cost-effective flow of raw materials and finished commodities, as well as transactions between the consumer and producer sectors. The logistics sector includes multiple modes of transportation, supporting infrastructure, and related services that complement and increase the overall flow of products' competitiveness.
The market size of Indian logistics which includes road transport, rail, warehousing, cold chain, logistics, and rail freight terminals, was about ₹ 9.0 trillion in fiscal 2021 and is expected to grow at a CAGR of 10% to ₹ 15 trillion by Fiscal 2026.
Pristine Logistics' revenue from operations increased 18.68 percent from Rs 469.27 crore in Fiscal 2020 to Rs 556.93 crore in Fiscal 2021, attributed to commencement of the Birgunj and Siliguri terminals, resulting in a surge in handling and transportation services. Revenue for the nine-month period ended December 2021 stood at Rs 494.75 crore.
ICICI Securities Limited, HSBC Securities and Capital Markets (India) Private Limited and JM Financial Limited are the book running lead managers and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.