Future Supply Chain IPO to open on Dec 6, priced at ₹660-664

MUMBAI: Future Supply Chain Solutions Ltd, the logistics arm of Kishore Biyani-led Future Group, on Wednesday said its ₹650-crore initial public offering (IPO) will open on December 6.

The company has set a price range of ₹660-664 per share for the IPO, which values it at ₹2,644-2,660 crore. The offer will close on December 8.

Parent Future Enterprises Ltd and special situations fund SSG Capital will collectively sell 9.78 million shares. The offer will see a total stake dilution of 24.43%. No new shares will be issued.

Future Enterprises plans to sell 1.95 million shares, which will fetch the parent company ₹130 crore at the upper end of the price band. Post offer, the shareholding of Future Enterprises will drop by five percentage points to 53%.

Future Supply Chain hopes recent changes under Goods and Services Tax (GST) will help the logistics business.

“As the market evolves with GST, we are quite excited by the opportunity that’s going to get created in this industry in the next 10-20 years,” Rakesh Biyani, chairman of Future Supply Chain said in a media briefing.

“But I would say that one has to look at a business in terms of every five years. Future Supply Chain is ready for the market; we understand the art of efficiency and the science of supply chain.”

SSG Capital, through its entity Griffin Partners Ltd will sell a total of 7.83 million shares, worth ₹520 crore. Its stake will be reduced to 14.63% from the existing 34.18%.

In November, SSG Capital had sold a 4.9% stake in Future Supply Chain to the Edelweiss Crossover Opportunities Fund.

Future Supply Chain depends largely on business from other Future Group entities including Future Retail Ltd and Future Consumer Ltd.

The company makes 63% of its revenues from group companies, although it wants to take the contribution of external clients to 50% going forward, said Future Group CFO Sanjay Jain.