Mumbai: Logistics firm Navkar Corp. Ltd on Monday said it will launch an initial public offering (IPO) on 24 August to raise up to 600 crore. The offer will close on 26 August. The price band is between 147 and 155 per equity share.

The issuance includes a primary offering of shares of up to 510 crore as well as an offer for sale of 90 crore by an existing shareholder, part of the promoter group.

The bidding for the anchor investors will open on 21 August. Axis Capital Ltd, Edelweiss Financial Services Ltd and SBI Capital Markets Ltd are managing the IPO.

The firm has reserved 50% of the shares on offer for qualified institutional investors, while 35% is reserved for retail shareholders and remaining 15% for non-institutional investors and high net-worth individuals.

Navkar operates three container freight stations (CFS) close to the Jawarharlal Nehru Port, the country’s largest container port, near Mumbai.

On 31 May, its CFSs had an aggregate installed handling capacity of 310,000 TEUs (twenty-foot equivalent unit, a measure of cargo capacity) per annum.

The firm also operates a private railway freight terminal, which allows it to load and unload cargo from container trains operating between its CFSs and the port. It also helps the firm transport domestic cargo to and from inland destinations on the Indian rail network.

Navkar plans to use the funds raised via the IPO for raising the capacity of its CFS, development of the non-notified areas of its CFS and the establishment of a logisitics park at Valsad, Gujarat.

In 2014-15, Navkar reported revenue of 332 crore, a drop of almost 10% compared to the previous year’s revenue of 370.1 crore. The firm also reported a fall in its net profit to 74.3 crore from 90 crore.

So far this year, 10 firms have raised 4,672 crore through IPOs, according to data from primary market tracker Prime Database.

In 2014, five firms raised 1,200.9 crore, while in 2013, three firms raise 1,283.7 crore through IPOs. Also, so far this year, 25 firms have filed their draft IPO papers with the markets regulator Securities and Exchange Board of India.

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