Snowman Logistics soars 13%, nears 52-week high on heavy volumes

Adani Logistics has been offloading its stake in the Snowman Logistics via open market operations

Shares of Snowman Logistics soared 13 per cent to Rs 67 on the National Stock Exchange (NSE) on Tuesday after over 20 per cent of the company's total equity changed hands. The stock was trading close to its 52-week high level of Rs 70, touched on December 11.

Till 02.24 pm, around 39.13 million equity shares, representing 23 per cent of total equity of Snowman Logistics, changed hands on the NSE, the exchange data showed. Currently, the stock was trading 13 per cent higher at Rs 66.35, against a 0.42 per cent rise in the Nifty50 index.

Adani Logistics, a wholly owned subsidiary of Adani Ports and SEZ, has been offloading its stake in the Snowman Logistics via open market after the signing of a settlement agreement in July 2020.

So far in December, Adani Logistics has sold 20.57 million equity shares, representing 12.31 per cent of total equity, of Snowman Logistics via bulk deals on the NSE till Monday, December 28, the exchange data showed. The names of the buyers were not ascertained immediately.

As of September, Adani Logistics held 26 per cent stake or 43.4 million equity shares of Snowman Logistics, the shareholding pattern data showed.

Meanwhile, the board of directors of Snowman Logistics at its meeting held on December 21 approved to raise funds up to Rs 250 crore through qualified institutions placement (QIP) issue.

With the company’s focus on capacity expansion (an addition of 12,000 pallets over the next one year), setting up of dedicated facilities for e-commerce players such as Amazon and increasing focus on margin-accretive segments such as pharmaceuticals, India Ratings and Research (Ind-Ra) expects Snowman Logistics’ business profile to improve and financial profile to remain strong in the medium term.