MUMBAI : Pristine Logistics & Infraprojects Ltd plans to raise ₹1,100 crore through an initial public offering (IPO), according to people aware of the development.
The company will file its draft red herring prospectus with the Securities and Exchange Board of India next week. The offer comprises fresh issuance of shares along with an offer for sale by shareholders.
The proceeds will be used to fund working capital and for general corporate purposes.
Incorporated in 2009, the Delhi-based logistics and infrastructure company is present in cities such as Ludhiana, Faridabad, Patna, Siliguri, Kolkata, Pipavav, Mundra, and in Nepal.
The company will now enter south India in the wake of its subsidiary Pristine Malwa Logistics Park Pvt. Ltd recently seeking the approval of lenders for acquiring Sical Logistics, previously owned by Coffee day Enterprises Ltd, as part of a corporate insolvency resolution process.
Lenders have approved Pristine Malwa’s plan with a majority of 77.5% votes.
Following the acquisition, the company will have a significant presence in the south with Sical’s container freight stations in Chennai, Thoothukudi, and Vizag giving it the capability to service approximately 150,000 twenty-foot equivalent units per year. It will also have two land parcels in Chennai and Bengaluru that the company may use to set up additional terminals.
At present, the company creates and operates rail-linked logistics parks and container terminals. It owns a fleet of more than 225 road vehicles and also runs warehouses for export, import, and domestic cargo.
The logistics and infrastructure service provider also looks at managing consolidation and distribution requirements of bulk and break-bulk commodities. The company owns crude-edible oil storage and transportation facilities.
This also includes railing solutions for import and export containers to and from all the major western ports.
The company has peers such as Adani Logistics, Mahindra Logistics, Future Supply Chain Solutions, and Gateway Distriparks.
The book running lead managers to the issue are ICICI Securities Ltd, HSBC Securities Ltd and JM Financial Ltd.
