SSG part-exits India's Future Supply Chain for $19m
SSG Capital Management has made a partial exit from Future Supply Chain (FSC), a supply chain and logistics subsidiary of India’s Future Enterprises (FEL), for INR1.25 billion ($19 million).
The firm sold 1.96 million shares, representing a 4.9% stake in FSC, to funds managed by Edelweiss at INR636.60 per share, according to a filing. SSG paid INR5.8 billion for a 40% stake in FSC last year, buying shares held by FEL and the FSC management team, as well as a 26% interest held by Fung Capital, the PE arm of Hong Kong-based supply chain giant Li & Fung Group.
The exit leaves SSG with 13.7 million shares. SSG plans to sell another 7.8 million shares in FSC’s IPO, in which FEL will also sell 2 million shares. Pricing for the shares has not been announced, and FSC will not sell any new shares in the offering.
FSC is one of India’s largest organized third-party logistics service providers, offering warehousing, distribution, and other logistics services. As of July 2017, it had 42 distribution centers across India with a total of 3.8 million square feet of warehouse space, along with 590 vehicles serving 35 states and union territories.
Founded in 2007 to provide supply chain and logistics services to entities of the Future Group, FSC now derives nearly 38% of its revenue from non-Future companies. Total revenue for the year ended March 2017 came to INR5.8 billion, up from INR5.3 billion the year before. Over the same period net profit grew from INR294 million to INR458 million.
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