VRL Logistics Ltd has fixed a price band of Rs 195-205 for its initial public offering constituting a fresh issue of Rs 117 crore worth of equity besides an offer-for-sale by NSR-PE Mauritius LLC, Vijay Sankeshwar and Anand Sankeshwar for over 1.71 crore shares (amounting to Rs 350.878 crore at the higher end of the price band).
The issue opens on April 15 and closes on April 17.The minimum bid size is 65 shares and in multiples of 65 shares thereafter.
Qualified institutional buyers would be allotted 50 per cent of the issue size, non-instituional investors 15 per cent and retail investors portion would be 35 per cent.
The shares would be listed on the BSE and the NSE. HSBC Securities and Capital Markets (India) and ICICI Securities are the book running lead managers to the issue and Karvy the registrar and transfer agent.
From the issue proceeds, the company plans to spend Rs 67.415 crore towards purchase of 248 new goods transportation vehicles of different models. In addition, Rs 28 crore would be used for repayment/prepayment of loans availed from banks and financial institutions such as NKGSB Cooperative Bank, IDBI Bank, Tata Capital Financial Ltd and Saraswat Cooperative Bank.
VRL logistics is in the business of providing surface logistics and parcel delivery with a fleet of 3,546 owned vehicles across 28 states through 624 branches. The company caters to industries such as FMCG, food, textiles, pharma, apparel and furniture among others.
It also provides luxury bus services across western and southern states besides car carrier vehicles and vehicles for liquid transportation.
For the nine months ended December 31, 2014, the company’s revenue from operations was Rs 1,273.8 crore and net profit was Rs 71.69 crore.