Future Supply Chain (FSC) Solutions Ltd is one of India’s largest organised third-party logistics service operators, according to an Alvarez & Marsal India report. The company offers automated and IT-enabled warehousing, distribution and other logistics solutions to a wide range of customers. Its service offerings, warehousing infrastructure, pan-India distribution network, hub-and-spoke transportation model and automated technology systems supports its competitive market position. The company’s customers operate in various sectors across India, including retail, fashion and apparel, automotive and engineering, food and beverage, fast moving consumer goods (FMCG), e-commerce, healthcare, electronics and technology, home and furniture and ATMs.
Kishore Biyani-promoted Future Enterprises Ltd promotes FSC Ltd. Other entities promoted by Kishore Biyani include Future Retail Ltd, Future Consumer Ltd and Future Lifestyle Fashions Ltd (collectively, the Future Entities). While its business was originally established to provide supply chain and logistics solutions for its promoter and certain group companies, FSC Ltd has diversified its customer base across various sectors. The company’s customers, except its promoter and group companies accounted for 30.3%, 37.5%, 50.5% and 53.5% of its revenue from operations for the six-months ended September 30, 2017, and fiscals 2017, 2016 and 2015, respectively.
FSC Ltd believes its business model enables it to act as a service provider that can comprehensively cover its customers’ supply-chain needs. It provides solutions that enable its customers to leverage its distribution network, which it believes optimises the performance, cost and efficiency of their supply chains, shortening their lead-time to market.
The company offers its customers in three key areas:
- Contract logistics: Warehousing, distribution and other value-added services
- Express logistics: Point-to-point, less-than truck-load, time-definite transportation services
- Temperature-controlled logistics: Cold-chain warehousing, transportation solutions and distribution of perishable products
- Rs. 645.78-649.70 crore;
fresh issue of Rs. 480 crore and
offer for sale of 10,00,000 equity shares - 22 equity shares and in multiples thereafter
- QIBs - 50%, NIBs - 15%, Retail - 35%
- Rs. 10
- ASBA mandatory (No cheques will be accepted)
- Proposed to be listed on BSE and NSE
- Edelweiss Financial Services Ltd, CLSA India Pvt Ltd,
Nomura Financial Advisory & Securities (India) Pvt Ltd,
IDFC Bank Ltd, IIFL Holdings Ltd, and YES Securities (India) Ltd - Link Intime India Pvt Ltd
- One of the largest service providers with an extensive network
of facilities in a fast-growing third-party logistics market - Comprehensive solution for supply-chain requirements
- Diverse customer base across many sectors
- At the forefront in introducing new standards of technology and
automation in the logistics industry in India - Longstanding relationship with future entities
- Experienced management team with logistics and retail sector-specific knowledge
Offer for sale
The company will not receive any proceeds from the offer and all the proceeds will be received by the selling shareholders, in proportion to the equity shares offered by the respective selling shareholders as part of the offer. The objects of the offer for the company are to achieve the benefit of listing the equity shares on the stock exchanges and for the sale of equity shares by the selling shareholders. Further, the company expects that listing of equity shares will enhance its stability and brand image and provide liquidity to its existing shareholders.
An initial public offering (IPO)/public issue is when an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public. This paves the way for listing and trading of the issuer’s securities.
The shares are initially issued in the primary market at an offering price determined by the lead manager(s)/the merchant banker(s) to the IPO.
The primary market consists of a syndicate of investment banks and broker dealers that the lead managers assemble and that allocate shares to institutional, high net worth individuals (HNI) and individual/retail investors.
As far as IPOs are concerned, a price band is a value-setting method whereby a seller indicates an upper and lower cost range, between which the buyers/investors are able to place their bids. The price band's floor and cap provide guidance to the buyers.
It is up to the company to decide on the IPO price or the price band, in consultation with the lead managers.
The basis of IPO price is disclosed in the offer document. The issuer is required to disclose in detail about the qualitative and quantitative factors justifying the IPO price.
The IPO price is normally based on such factors as the company’s financials, products and services, income stream as well as the demand for the shares and current market conditions.
The lead managers must determine a fair offering price, which takes into consideration the need for the company to raise capital while offering the new issue at a price which represents a fair value of the shares.
A Red Herring Prospectus (RHP) is a document submitted by a company (issuer) as part of a public offering or an IPO of securities (either stocks or bonds).
A retail individual investor means an investor who applies or bids for securities of or for a value of not more than Rs 2,00,000.
Yes. He can bid in a book-built IPO for a value not more than Rs 2,00,000. Any bid made in excess of this will be considered in the HNI category.
Yes. Investors can change or revise the quantity or price in the bid using the form for changing/revising the bid that is available along with the application form. However, the entire process of changing or revising the bids shall be completed before the IPO closes.
In case of fixed price issues, investors are intimated about the CAN/Refund order within 10 days of the closure of the IPO.
In case of book built IPOs, the basis of allotment is finalised by the book-running lead managers within two weeks from the closure of the issue. The registrar then ensures that the demat credit or refund as applicable is completed within 6 working days of the closure of the issue.
In the case of book-built issues, the exchanges (Bombay Stock Exchange/National Stock Exchange) display the data regarding the bids obtained (on a consolidated basis between both these exchanges).
The data regarding the bids is also available category-wise.
Investors are entitled to receive a Confirmatory Allotment Note (CAN) in case they have been allotted shares within 6 working days from the closure of a book Built issue. The registrar has to ensure that the demat credit or refund as applicable is completed within 6 working days of the closure of the book-built issue.
The lead managers also publish an advertisement at least in an English national daily with wide circulation, one Hindi national paper and a regional language daily circulated at the place where registered office of the issuer company is situated.
The listing on the stock exchanges is done within seven days from the finalisation of the issue.
Ideally, it would be around three weeks after the closure of the book-built issue.
In case of fixed price issue, it would be around 10 days after closure of the issue.