PE-backed Continental Warehousing files for India IPO
Indian logistics provider Continental Warehousing has filed for a domestic IPO, setting up The Abraaj Group for a full exit. Warburg Pincus is expected to make a partial exit.
According to a filing, the company is seeking to raise INR4.2 billion ($63 million) through the issue of new shares at a still unconfirmed price. The offer will also include the sale of 10 million shares held by Warburg Pincus and 3.7 shares held by Abraaj across three funds.
Warburg Pincus currently holds about 33 million shares, or a 40.4% stake. In 2011, it invested $200 million in the company via deals with IL&FS Investment Managers and Aureos Capital.
Abraaj first gained its exposure through a 2012 acquisition of Aureos, and now claims a 4.6% interest. A third shareholder, the International Finance Corporation (IFC), will retain its holding of 7.9 million shares, which currently equates to a 9.7% stake.
Continental owns and operates cargo handling and storage facilities as well as offering third-party logistical services. Assets include a network of container stations, depots and freight terminals across India. Revenue declined 3.6% during the 2016 financial year to INR7.1 billion, while net profit fell 4.9% to INR515.9 million.
Indian logistics has attracted increased private equity attention in recent months on the back of government incentives and macroeconomic drivers to modernize the country's supply chains. Warburg Pincus has been active in the sector with a $125 million investment in Stellar Value Chain Solutions and a commitment to form a $250 million warehousing joint venture with real estate developer Embassy Group.
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