Navkar Corporation has received the approval of the Securities and Exchange Board of India (SEBI) for launching its initial public offering (IPO). This Raigad-based logistics firm plans to raise up to INR600 crore through its maiden public share offering. The offering would comprise a fresh issue of shares worth INR510 crore as well as an offer of sale from Sidhhartha Corporation worth INR90 crore. Axis Capital Limited, Edelweiss Financial Services Limited, and SBI Capital Markets Limited are the book running lead managers of the issue. The company plans to use IPO proceeds towards capacity enhancement of the Somathane container freight station (CFS), development of the non-notified areas of CFSs and establishment of a logistics park at Valsad in Gujarat.
The company operates through three CFS units – Ajivali CFS I and Ajivali CFS II at Ajivali and Somathane CFS at Somathane – all the three units are located in Panvel, Maharashtra, in close proximity to India’s largest container port the Jawaharlal Nehru Port. As of December 2014, Navkar Corporation’s aggregate installed handling capacity stood at 310,000 TEUs (twenty-foot equivalent units) per annum. The company has a private railway freight terminal which allows it to load and unload cargo from container trains operating between the Somathane unit and the port. In addition, it owns and operates 461 trailers for the transportation of cargo between its units and the port by road.
Navkar Corporation works with shipping lines, logistical service providers and customs house agents, importers and exporters including United Arab Shipping Agency, NYK, Hyundai Merchant Marine, and Evergreen Shipping Agency. The proposed logistics park at Umergaon, Valsad is conceived as a fully-integrated logistics park with an adjacent inland container depot (ICD). Over the last few years, the company has seen tremendous growth in business growth and profits. It has seen straight line acceleration from a top line of INR137 crore in FY 2009/10 to INR370.2 crore in FY 2013/14. During the timeframe, the company’s net profit increased from INR22.5 crore to INR90 crore.
Navkar Corporation joins the list of the companies having secured the regulator’s approval for IPOs. Included in this list are Lavasa Corporation, RINL, Sadbhav Infrastructure Project, SMC Global Securities, ACB (India), Shree Pushkar Chemicals and Fertilisers.