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Navkar Corporation IPO gets good response from investors

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Capital Market
Last Updated : Aug 28 2015 | 12:01 AM IST

Receives bids for 8.14 crore shares

The initial public offer (IPO) of Navkar Corporation received bids for a total of 8.14 crore shares, compared with 2.85 crore equity shares on offer, as per data from the National Stock Exchange (NSE) website. The IPO was subscribed 2.85 times. The IPO closed yesterday, 26 August 2015.

Category-wise subscription data showed that the Qualified Institutional Buyers (QIBs) portion of the IPO was subscribed 6.47 times. Non institutional investors (NII) category was subscribed 0.9 times. The retail investors portion of the IPO was subscribed 1.62 times.

Navkar Corporation had raised Rs 180 crore by selling 1.16 crore shares to a total of 15 anchor investors. The shares were allotted to the anchor investors at Rs 155 per share, the top end of the Rs 147 to Rs 155 per share price band for the IPO.

A total of eight mutual funds were allocated a total of 73.51 lakh shares through 21 schemes. Among other anchor investors, Abudhabi Investment Authority was allotted 10.32 lakh shares, Morgan Stanley Mauritius Company 10.32 lakh shares, Morgan Stanley investment Mauritius was allotted 6.45 lakh shares, Ashburton India Equity Opportunities Limited was allotted 5.8 lakh shares, Nomura Singapore was allotted 3.22 lakh shares, Prime India Opportunity Fund was allotted 3.22 lakh shares and Amundi Funds has been allotted 3.22 lakh shares.

Navkar Corporation has raised Rs 600 crore through the IPO, comprising of fresh issue of equity shares aggregating to Rs 510 crore and offer for sale of Rs 90 crore by the selling shareholder namely Sidhhartha Corporation Pvt Ltd, a member of the promoter group.

Promoted by Shantilal J Mehta, Navkar Corporation (NCL) is a container freight stations (CFSs) operator in India with three CFSs. The company operates in close proximity to the Jawaharlal Nehru Port (JNP), the largest container port in India. The company's three CFSs and private railway freight terminal (PFT) operations are spread over 3.59 million sq. ft., of which 1.63 million sq. ft. have been notified as a customs area.

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The company intends to invest Rs 314.56 crore from the net proceeds of the IPO to develop a logistics park at Valsad, Gujarat, which will have an initial planned capacity of about 474000 TEUs per annum (p.a.) to be commissioned by September 2016. About Rs 114.53 crore will be used to install a rubber tyred gantry crane at the existing Somathane CFS, which will increase the overall capacity of the company by 81% from 310000 TEUs p.a. to 5620000 TEUs p.a. by September 2016. The company intends to spend about Rs 54.25 crore for development of the non-notified areas of the CFSs which will also be developed by September 2016.

On consolidated basis, the company's net profit fell 19% to Rs 73.14 crore on 14% growth in net sales (excluding the trading business) to Rs 328.76 crore in the year ended 31 March 2015 over the year ended 31 March 2014.

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First Published: Aug 27 2015 | 11:18 AM IST

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