Future Supply Chain IPO (Listing Date Price Band Allotment)

Future Supply Chain IPO : Below is the Review of Future Supply Chain IPO (Also Future Supply Chain Share Price, IPO Allotment Date, DRHP Price Band etc). The Share Holders of Future Supply Chain looks to sell about  9,784,570 shares.  Future Supply Chain is an Indian supply chain company owned by Future Group (‘Kishore Biyani’). The Future Supply Chain Solutions Ltd. is one of the many companies listed from the Kishore Biyani Promoted Future Group.  The IPO from Future Supply Chain is one of the many companies going for a Public Issue in the coming months, along with Vaishali Pharma and also Majestic Research IPO. Below are the details of Future Supply Chain IPO such as Share Issue Price, Minimum Order Quantity, the Draft Prospectus etc.

Issue Details : Future Supply Chain IPO

Listing Date Late December
DRHP Download
Issue Price Rs. 380-450
Issue Capital Rs.450 Crore

Logistics Industry in India : Future Supply Chain IPO

Indian logistics market is estimated at c. INR 9,100 billion (US$ 140 billion) in FY 2017. Indian logistics expenditure is c. 6.0% of GDP (excluding inventory carrying cost), which is higher than that of the United States (c. 5.5% of GDP),but lower than that of China (c. 11.5% of GDP).

However, when we compare the logistics spent in India after adjusting for share of manufacturing/agriculture in GDP and geographic size of the country, logistics in India is around twotimes less efficient than China and US.

If we include impact of inventory cost, the difference in efficiencies become even more wider as time of transport and cost of storage & handling in India is significantly higher than global benchmarks. Hence, there exists opportunity to optimize the logistics spend in India.

Business of the Company : Future Supply Chain IPO

Future Supply Chain is one of India’s largest organised third-party logistics service operators, according to the A&M Report. They offer automated and IT-enabled warehousing, distribution and other logistics solutions to a wide range of customers.

Future Supply Chain service offerings, warehousing infrastructure, pan-India distribution network, “hub-and-spoke” transportation and automated technology systems support our competitive market position.

Future Supply Chain customers operate in various sectors across India, including retail, fashion and apparel, automotive and engineering, food and beverage, fast-moving consumer goods (“FMCG”), e-commerce, healthcare, electronics and technology, home and furniture and ATMs.

Future Supply Chain believe our business model enables us to act as a service provider that can comprehensively cover our customers’supply chain needs.

Future Supply Chain provide solutions that enable our customers to leverage our distribution network and which,we believe, optimizes the performance, cost and efficiency of their supply chains, shortening their lead-time to market.

Future Supply Chain offerings are in three key areas:

  • Contract Logistics: warehousing, distribution and other value-added services;
  • Express Logistics: point-to-point, less-than truck-load, time-definite transportation services; and
  • Temperature-Controlled Logistics: cold-chain warehousing, transportation solutions and distribution of perishable products.

Strengths : Future Supply Chain IPO

  • One of the largest service providers with an extensive network of facilities in a fast-growing third-party logistics market.
  • Comprehensive solution for supply chain requirements.
  • Diverse customer base across many sectors.
  • Longstanding relationship with Future Entities
  • Experienced management team with logistics and retail sector-specific knowledge
  • The GST implementation has a very positive impact on the logistic industry

Strategy going forward : Future Supply Chain IPO

  • Capitalise on the growth of the third-party logistics industry in India.
  • Target growth by identifying new customers, increasing our share of existing customers’ third -party logisticsspending and leveraging existing relationships.
  • Expand addressable market through customised and new service offerings.
  • Invest further in infrastructure and expand our network.
  • Explore inorganic growth opportunities.
  • Continue to improve operating efficiency and implement technological and process enhancements.

Based on the average P/E of logistics industry in India i.e. 40-45, the issue price can be any where between Rs. 380-450. The size of the issue is expected to be 450 Cr.

Conclusion : Future Supply Chain IPO

If you have any further questions on Future Supply Chain IPO editorial, post your question on our comments section below. This article relating to Future Supply Chain IPO was compiled by CAexam Editorial Team.

Updated: May 17, 2018 — 5:40 pm
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