Blackstone-backed Horizontal Industrial Parks IPO a long-term bet: Analysts

Horizontal Industrial Parks IPO: The ₹2,600-crore initial public offer (IPO) by Horizon Industrial Park, an industrial and logistics infrastructure developer backed by Blackstone, kicks off bidding today, August 17. The offer will remain available for subscription till August 19. 

 

Analysts find the IPO to be a long-term investment opportunity, backed by its high operational profitability, reasonable valuations, strong customer relationships and technical capabilities. India's industrial and logistics sector is also poised for strong growth, supported by rising manufacturing, consumption and e-commerce activity, which could play in Horizon Industrial Park's favour. 

 

The company already has a strong market position, as it is India’s largest industrial and logistics infrastructure developer, owner and operator by total network area with a portfolio of 45 assets across 10 key industrial and consumption hubs. Its diversified tenant base, strong portfolio occupancy of 93.6 per cent, and a substantial development pipeline of 30.03 mn sq. ft. provide visibility for future growth.

 

 

The issue is entirely a fresh share sale, with no offer for sale (OFS) component. The raised funds are proposed to be used for repayment of borrowings and general corporate purposes.  Also Read | Lalithaa Jewellery IPO: Margin, cash flow risks linger; bid or avoid?

 

SBI Securities said that debt repayment of up to Rs 2,250 crore will deleverage the balance sheet and reduce the interest cost going forward. Thus, it expects Horizon Industrial Parks to achieve break-even at PAT level in FY27.

 

Horizon Industrial Parks IPO price band is fixed at ₹57 to ₹60 per share. The lot size for an application is 250 shares. 

 

Brokerages on Horizon Industrial Parks IPO

Here's what brokerages recommended on Horizon Industrial Parks IPO:

 

Swastika Investmart

Swastika said Horizon Industrial Park's asset-heavy leasing business model yields high operational profitability, generating an EBITDA margin of ~79.16% in FY26. The 88.74% pre-issue promoter backing from Blackstone provides global tenant referral pipelines, low borrowing spreads, and disciplined capital allocation, it said.

 

"The IPO offers a clean structural asset play. The steep debt reduction from fresh proceeds transforms the platform from a capital-heavy, loss-making infrastructure builder into a cash-generative, profitable Grade-A logistics platform," it added. 

 

The 2.15x P/B valuation presents a reasonable entry multiple for long-term exposure to India's logistics expansion, according to the brokerage. 

 

Master Capital

Horizon Industrial Parks is well positioned to benefit through its strategically located Grade A fulfillment centers, industrial facilities and in-city centers across major industrial and consumption hubs, said Master Capital. 

 

Its integrated offerings, including built- to-suit and plug-and-play facilities, cold storage, energy solutions and material handling solutions, enable customers to streamline operations. The company's strong customer relationships, technical capabilities, development pipeline and focus on strategic acquisitions and greenfield developments further support its ability to capitalise on the growing demand for modern industrial and logistics infrastructure in India, according to the brokerage. 

 

Therefore, it believes that investors may consider the IPO as a potential long-term investment opportunity.

 

Horizon Industrial Park IPO GMP

Horizon Industrial Park IPO's grey market premium (GMP) is ₹3.5. This means that shares of Horizon Industrial Park are trading at ₹63.5 in the unofficial market ahead of the offer launch, signalling a listing pop of nearly 6 per cent.

 

The shares of Horizon Industrial Park will list on the bourses on August 24. 

 

JM Financial, Axis Capital, IIFL Capital Services, 360 ONE WAM and SBI Capital Markets are the book-running lead managers. Meanwhile, KFin Technologies is the registrar.

 

Disclaimer: Views and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.