Snowman Logistics spurts 100% over IPO price

Snowman Logistics hit an upper circuit limit of 5% at Rs 94.65 at 11:28 IST on BSE on strong buying support.

Meanwhile, the BSE Sensex was up 16.19 points, or 0.06%, to 27,128.40.

On BSE, so far 94,000 shares were traded in the counter. The stock opened with an upward gap, rising by the maximum 5% daily circuit and remained locked at the 5% level at Rs 94.65 so far in the day.

Shares of Snowman Logistics have risen 101.38% compared to its initial public offer (IPO) price of Rs 47.

The small-cap company has an equity capital of Rs 166.45 crore. Face value per share is Rs 10.

Shares of Snowman Logistics listed on the stock exchanges on 12 September 2014. That day it settled at Rs 78.75 on BSE, a premium of 67.55% over the IPO price of Rs 47.

The stock debuted at Rs 75, a premium of 59.57% to the IPO price.

Reliance mutual fund and a well known investor bought Snowman Logistics shares via bulk deals on listing day on NSE.

Reliance Mutual Fund Tax Saver (ELSS) fund bought 16 lakh shares at Rs 79.80 per share and Reliance Mutual Fund bought 20 lakh shares at Rs 79.04 per share.

Derive Investments, an investment firm run by independent investor Radhakishan Damani, also bought 23.70 lakh shares at Rs 78.90 a piece. Radhakishan Damani is known in India for his stock picks.

Shares were acquired from Kotak Mahindra Bank, which sold 15.41 lakh shares at Rs 79.67 per share.

The IPO of Snowman Logistics was subscribed 59.75 times with total bids for 194.49 crore shares, compared with 4.20 crore shares on offer. The issued opened on 26 August 2014 and closed 28 August 2014. Snowman Logistics had priced the IPO at the top end of the Rs 44 to Rs 47 per equity share price band.

The qualified institutional buyers (QIBs) portion was subscribed 16.98 times. Non Institutional Investors portion was subscribed 221.79 times. Retail Individual Investors (RIIs) portion was subscribed 41.26 times.

Ahead of the IPO, the IPO committee of the board of directors of Snowman Logistics had allocated 94.50 lakh equity shares to anchor investors at Rs 47 per equity share. Among the anchor investors, Faering Capital India Evolving Fund was allotted 34.92 lakh shares. ICICI Prudential Growth Fund - Series 2 was allotted 21.27 lakh shares. ICICI Prudential Value Fund Series 4 was allotted 8.51 lakh shares. IDFC Sterling Equity Fund was allotted 26.59 lakh shares and IDFC Infrastructure Fund was allotted 3.19 lakh shares.

Snowman Logistics reported net profit of Rs 22.48 crore on net sales of Rs 153.41 crore in the year ended March 2014.

Gateway Distriparks is promoter and the largest shareholder in Snowman Logistics. Snowman is an integrated temperature controlled logistics services provider with 23 temperature controlled warehouses across 14 locations in India including Serampore (near Kolkata), Taloja (near Mumbai), Palwal (near Delhi), Mevalurkuppam (near Chennai) and Bengaluru capable of warehousing 58,543 pallets and 3,000 ambient pallets as of 31 March 2014. Snowman Logistics operates 370 reefer vehicles for primary and secondary transportation as of 31 March 2014.

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