About the Company:
Future Supply Chain Ltd is one of India’s largest organised third-party supply chain and logistics service provider.They are promoted by Future Enterprises Limited, which is promoted by Kishore Biyani.
Company offers automated and IT-enabled warehousing, distribution and other logistics solutions to a wide range of customers.
As of July 31, 2017, for the contract logistics services,Company runs their operations through 42 distribution centres across India, covering approximately 3.80 million square feet of warehouse space and 2 distribution centres at customer premises, covering area of approximately 0.37 million square feet.
Company’s distribution centre at the Multi-modal International Hub Airport at Nagpur (MIHAN) is one of the largest and most highly automated distribution centres in India.
Distribution centre at MIHAN covers approximately 0.37 million square feet of warehousing space, housing a high-speed cross-belt sorter system, which is the first of its kind in India, with a sorting capacity of approximately 2,000 cases per hour.
Company has recently set up an Integrated Food Distribution Centre (“IFDC”) in Kolkata, which caters to multiple formats and categories for the food industry, including cold storage, in the same location.
Thay have targeted to open up to five new IFDCs across the North, East and South regions of India, with their IFDC in Kolkata being the first, in the next two years and to increase the geographic coverage of their IFDCs across India.
Company has a extensive network of 46 distribution centres, including 4 temperature-controlled distribution centres, 14 hubs and 105 branches (including franchisees and 13 of which are co-located on the same premises as our hubs), covering 11,228 pin codes across 29 states and 5 union territories creates a pan-India supply chain
network.
Future Supply Chain Solutions Ltd will be the 6th Future Group firm to be listed, the other Group Companies which are already listed are as follows.
- Future Retail Ltd
- Future Consumer Ltd
- Future Market Networks Ltd
- Future Enterprises Ltd
- Future Lifestyle Fashions Ltd
Company’s business originally was established to provide supply chain and logistics to certain of the Group Companies, including the Future Entities described below.
Future Retail Limited: focusing on hypermarket, convenience stores, value fashion, furniture, electronics and general merchandise with over 893 stores in 246 cities across India as of June 30, 2017; Future Retail Limited’s retail brands include Big Bazaar, FBB, FoodHall, EasyDay, eZone and HomeTown.
Future Lifestyle Fashions Limited: operating in the fashion and lifestyle space with over 372 stores across India as of March 31, 2017; Future Lifestyle Fashions Limited’s retail brands include Central and Brand Factory and its fashion brands include Lee Cooper, ALL, Scullers and Jealous 21 among others.
Future Consumer Limited: operating in branded foods and FMCG space with a portfolio of products for the new-age consumer generation; Future Consumer Limited’s brands include Tasty Treat, Golden. Harvest, Nilgiri’s, Cleanmate and Caremate among others.
Company Provides Services to various sectors across India such as:
- Retail, fashion and apparel,
- Automotive and engineering,
- Food and beverage,
- Fast-moving consumer goods (FMCG),
- E-commerce,
- Healthcare,
- Electronics and technology,
- Home and furniture
- ATMs.
Segment wise Revenue Breakup in Percentage :
| Segment | Percentage(%) |
|---|---|
| Fashion & Apparel | 23.6 |
| Automotive & Engineering | 22.3 |
| Food & Beverage | 15.3 |
| FMCG | 7.3 |
| E-Commerce | 6.7 |
| Healthcare | 6.1 |
| Electronics & Technology | 6.0 |
| Home & Furniture | 5.6 |
| ATMs | 4.3 |
| Others | 2.7 |
| Total | 100% |
Apart from Future Group Companies,They also provide Services to the Following Companies:
- HPL Electric & Power Limited,
- PepCart Logistics Private Limited (Pepperfry),
- Surya Roshni Limited,
- TTK Prestige Limited,
- Bestseller Fashion India Private Limited,
- VERO MODA Retail Private Limited,
- M/s Asandas & Sons (HyFun FOODS),
- Reckitt Benckiser (India) Private Limited, Amway India
- Enterprises Private Limited,
- Kellogg India Private Limited,
- Mondelez India Foods Private Limited
- Amway India Enterprises Private Ltd
Company offers their customers services 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.
Temperature-Controlled Logistics : cold-chain warehousing, transportation solutions and long-haul distribution of perishable products
Segmentwise Revenue breakup:
| Segment | Percentage(%) |
|---|---|
| Contract Logistics | 69.8% |
| Express Logistics | 21.7% |
| Temperature-Controlled Logistics | 6.2% |
| Other Operations | 2.2% |
| Total | 100% |
Awards received by the Company in the Year 2017:
- Excellence Award – 3PL Solutions at the ICC Supply Chain & Logistics Awards.
- Best Cold Chain 3PL Service Provider of the Year at the Cold Chain Industry Awards.
Management Team:
- Mr.Rakesh Biyani (Designation: Chairman and Non-Executive Director)
- Mr.Mayur Toshniwal (Designation: Managing Director and Chief Executive Officer)
- Mr.Chandra Prakash Toshniwal (Designation: Non-Executive Director)
Promoters Average Acquisition Cost:
| Name of the Promoter | No. of Shares held | Average Acquisition Cost (in Rs.) |
|---|---|---|
| FEL (Future Enterprises Limited) | 22,472,831 | 23.49 |
| Griffin | 15,654,681 | 328.98 |
TOP 10 Shareholders:
| Sr.No. | Shareholder Name | Number of Equity Shares held | Percentage of Equity Share Capital % |
|---|---|---|---|
| 1. | FEL (Future Enterprises Limited) | 113,279,700 | 57.42 |
| 2. | Griffin Partners Limited | 15,654,681 | 40.00 |
| 3. | Anshuman Singh and Nidhi Singh | 510,771 | 1.30 |
| 4. | Future Corporate Resources Limited | 499,700 | 1.28 |
| 5. | Future Retail Limited | 100 | Negligible |
| 6. | Kishore Biyani | 100 | Negligible |
| 7. | Vijay Biyani | 100 | Negligible |
| Total | 39,138,283 | 100% |
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Peer Group Comparison:
- We believe that none of the listed companies in India have a business model and asset structure similar to Future Supply Chain, So we cannot make any Comparison.
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 |
|---|---|---|---|---|---|
| Revenue | 354.0 | 333.19 | 410.7 | 528.47 | 576.99 |
| Net Profit | (-4.1) | 4.22 | 24.65 | 29.42 | 45.75 |
Positives for the Company:
- Experienced management team with logistics and retail sector-specific knowledge.
- One of the largest service providers with an extensive network of facilities in a fast-growing third-party logistics market.
- Diverse customer base across many sectors.
- Longstanding relationship with Group Companies.
- Future Group (Retail) is growing very fast in India, So naturally Future Supply Chain is also expected to grow tremendously.
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 6th December 2017 |
| Issue Closes on:. | 8th December 2017 |
| Issue Price | Rs.660 – 664 |
| Face Value | Rs.10 |
| Minimum Lot | 22 shares |
| Minimum Investment | Rs.14,608 |
| Retail Allocation | 35% |
| Issue Constitutes | 23.80% |
| Issue Size | Rs.649.69 cr |
| Market Cap | Rs.2728.72 cr |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 19,56,914 |
| Equity Shares Offered (OFS) | 78,27,656 |
| Total Equity Shares Offered(Fresh + OFS) | 97,84,570 |
| Equity Shares Prior | 3,91,38,283 |
| Equity Shares after the issue | 4,10,95,197 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 13th December 2017 |
| Initiation of Refunds | on or Before 14th December 2017 |
| Credit of Equity Shares: | on or Before 14th December 2017 |
| Listing Date: | on or Before 18th December 2017 |
Subscription Details:(Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 19,56,914 | 0.508 | 1.09 | 12.36 |
| NII | 14,67,686 | 0.19 | 1.301 | 11.15 |
| Retail | 34,24,600 | 0.27 | 1.372 | 2.69 |
| Employee | ——– | —– | —- | —- |
| TOTAL | 68,49,200 | 0.32 | 1.28 | 7.27 |
Anchor Investor Participation Update:
- Future Supply Chain Solutions raises Rs 195 crore from anchor investors.
- In all, 2.93 million shares were allocated to 16 anchor investors.
- Nine of the anchor investors were mutual fund schemes belonging to six mutual fund houses.
- Prominent names include L&T Mutual Fund Trustee Ltd, Reliance Capital Trustee Company and HDFC Trustee Company.
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 11.24 | 59.07 | 15.6% | 74.81 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Long Term | 15% |
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Grey Market Premium :
| Date | IPO | Price Band | Grey Market premium | Kostak Rates |
|---|---|---|---|---|
| 17/12/17 | Future Supply Chain Solutions Ltd | Rs.660 – 664 | 59 – 63 | 750 – 800 |
| Company Contact Info: |
|---|
| Future Supply Chain Solutions Ltd Knowledge House Shyam Nagar Jogeshwari-Vikhroli Link Road Jogeshwari (East) Mumbai 400 060 Tel: +91 22 6644 2200 Fax: +91 22 6644 2201 E-mail: investorrelations@futuresupplychains.com Website: www.futuresupplychains.com |
| Check IPO Allotment Status: |
|---|
Link InTime Websitehttps://linkintime.co.in/PublicIssues/ |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C-101, 247 Park, L B S Marg, Vikhroli (West) Mumbai 400 083 Tel: +91 22 4918 6200; Fax: +91 22 4918 6195 E-mail: futuresupply.ipo@linkintime.co.in Investor Grievance E-mail: futuresupply.ipo@ linkintime.co.in Website: www.linkintime.co.in |
