NEW DELHI: Shares of Future Supply Chain Solutions made a decent debut on Monday, as the scrip got listed at Rs 674 on BSE, up 1.5 per cent over its issue price of Rs 664. At 10.02, the scrip was trading 3.95 per cent higher at Rs 690.25.

The initial public offering (IPO) of the logistics arm of the Future Group, which ran from December 5 to December 8, was subscribed 7.56 times. The quota set aside for qualified institutional buyers (QIBs) was oversubscribed 12.36 times, high net worth individuals 11.15 times and retail investors 3.17 times. The IPO had receive nearly 4 lakh applications.

Future Supply Chain Solutions is among India’s largest organised 3PL Service Operators. The company offers automated and IT-enabled warehousing, distribution and other logistics solutions to a wide range of customers. The company had fixed a price band of Rs 660-664 per share. Future Supply Chain Solutions had raised Rs 195 crore from anchor investors.

On clientele basis, Future group contributed around 70 per cent of H1FY18 revenue. Apart from the promoter group the customer base includes Pepe Jeans India, Clarks Future Footwear, Surya Roshni and TTK Prestige.

Most of the brokerages had given subscribe rating to the issue. Over, FY13- FY17 the company sales have grown at a CAGR of 12.2 per cent whereas over FY12-17 logistics sector has grown at a CAGR of 12 per cent.

Operating margins of the company for FY17 stands at 13.2 per cent which has been improved to 15.7 per cent in H1FY18. This improvement was due to volume growth, renewed management strategy to focus on clients with lower receivable days in the express business.

Management expects margins to improve going ahead mainly due to higher volume and turnaround in cold storage business.

The company has posted ROE and ROCE of 20.4 per cent and 18.6 per cent respectively for H1FY18.