MUMBAI: Mumbai-based supply-chain firm Aqua Logistics made its debut on the Bombay Stock Exchange today.
 
The initial public offer (IPO) of Aqua Logistics ended on February 2, 2010, with 1.94 times subscription. The IPO garnered bids for 1.45 crore shares as against 75 lakh shares on offer. The company had set an issue price of Rs 220 a share.

HIGHLIGHTS

IPO details

Price band: Rs 220-230
Issue size: Rs 150 cr
Issue Date:  January 25-28 (later extended till Feb 2)

Objects of the issue

Purchase of specialized equipments
Expansion and establishment of offices
To finance the funds required for proposed acquisitions
Additional working capital requirements

Logistics Industry

3PL Value Chain

1PL      Own operation of Logistics by producer
2PL      Traditional Transportation and warehouse management
3PL      Management of Complex Service Chain

3 PL market size nearly Rs 4700 - 5000 cr

Logistics Industry (2008-09 E)
                        Rs
Road                178900 cr
Rail                  54700 cr
Warehousing    19400 cr
Others              23200 cr

Highly fragmented small firms comprise of 75-80% of the total industry
Small firms focus on cost (lack on service capabilities)
High cost structure (nearly 10.7% of GDP) much higher than developed nations 5-7%
Ongoing infrastructure build-up improves long-term prospects

Business Overview

Leading 3 Party Logistics (3PL) with end to end execution and consulting capabilities
Asset light, technology enabled business model for greater efficiency and timely delivery
Offerings include
1)Multimodal Transportation
2)Contract Logistics
3)Project Logistics
4) Supply chain consulting, last mile project execution, specialized transport and IT solutions

Strengths

Asset Light Business Model
Advantage and flexibility in selection of vendors
Plethora of services which are cost effective
Emerged as end to end logistics company
Repeat orders from large clients such as Ranbaxy, HCL Infosystems, ABB and BHEL

Concerns

No specific acquisition targets have been specified
Not placed orders for specialised equipment aggregating Rs 30.5 cr
Co has a negative cash flow since last 5 years
Due to asset light model might be difficult to bid for tenders requiring higher level of equipment bank

Domain Expertise

Automotives
Pharma
Retail
Telecom
Heavy Engineering
Power
Sports and Events

Geographical Presence

Mumbai
New Delhi
Chennai
Bangalore
Ludhiana
Baroda
Cochin
Pune

Shareholding Pattern

Promoter                      55.2%
Promoter Group           10.4%
Public                           33.05%
Employee                     1.3%

Break up of Public Shareholding

Enam Shares & Securities Private Limited         10.99%
Carwin Mercantiles Private Limited                   4.40%
Subhkam Ventures (I) Private Limited               3.67%
HT Media Limited                                            1.71%
Others                                                              12.28%
Total                                                                33.05%

Valuation

Note

IPO had been extended till Feb 2 after lukewarm response

IPO price band had also been decreased

Reduces IPO Price Band To Rs 200 - Rs 225

Issue Price Fixed at Rs 220/share

Final Subscription figures

Total    1.94x

QIBs    0.26x

NIIs     5x

RIIs      3x