Mumbai: Shares of Kishore Biyani-led Future Supply Chain Solutions listed on the stock exchanges on Monday at Rs676, up 1.8% from its issue price of Rs664 per share.
At 1.48pm, the stock was trading at Rs690.15 on the BSE, up 4% from its issue price. The Sensex was trading at 33,527.93 points, up 0.19%.
The initial public offering of the logistics arm of Future Group was open for subscription from 5-8 December with a price band of Rs660-664 per share. The issue was oversubscribed 7.56 times. The third-party logistics (3PL) company aimed to raise Rs650 crore through the share sale.
Ahead of the IPO, analysts had said the issue was reasonably priced. According to Centrum Broking Ltd, at the higher end of the price band of Rs664, the issue is priced at price-to-equity (PE) of 58.1 times on FY17 and 39.9 times on first half of FY18 basis, which appears to be fairly valued.
Analysts said the company has an asset light business model, wherein the company leases out warehouses and certain vehicles which gives it the flexibility to customize services.
Over FY15-17, the company registered revenue and net profit compounded annual growth rate (CAGR) of 17% and 36%, respectively. Earnings before interest, tax, depreciation and amortisation (Ebitda) margins contracted to 13.2% in FY17 from 15.7% in FY15.
The offer will see a total stake dilution of 24.43%. The company will not receive any funds raised from the issue. The object of the issue is to achieve benefits of listing and enhance the company’s visibility and brand image along with providing liquidity to its shareholders.