Norwest, IFC-backed Snowman Logistics files for IPO

According to the prospectus, Snowman - a subsidiary of Indian port-based logistics operator Gateway Distripark - is looking to dilute a 25% stake, selling 42 million shares.

Norwest, which took a 14% stake in Snowman back in June for INR600 million ($10.4 million), will see its stake reduced to 10.21%. IFC, which invested $6.5 million in the company in April last year, will sees its stake reduced to 9.31%. Other investors include Japan's Mitsubishi Corporation, and its logistic arm, as well as Nichirei Logistics Group.

The draft prospectus comes as Gateway is consolidating its stake in the business, having entered into a definitive agreement with Nichirei to acquire its 6% in Snowman for about INR259 million.

Post acquisition Gateway will hold a 54% stake in the company. Snowman will use the extra funds to set up six temperature controlled warehouses and two ambient warehouses in six cities, which will require INR1.43 billion. Another INR135 million is expected to be used for long-term working capital requirements.

Snowman has around 18 warehouse across the country and a fleet of more than 100 vehicles. The business claims to be India's first cold supply chain company with a nationwide presence, connecting more than 100 cities and distributing to more than 4400 outlets.

India's $390 million agricultural logistics industry is said to be highly fragmented. It is estimated that one third of farm output is wasted due to inadequate transportation and storage facilities.

Other opportunities in this sector have been targeted elsewhere in Asia recently. Last month, Cathay Capital Private Equity agreed to invest RMB120 million ($19.6 million) in Chinese refrigerated transport company Shanghai Zhengming Modern Logistics for an undisclosed stake.

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• Topics
• South Asia
• Exits
• India
• Logistics
• IPO
• Exit