Mumbai: Shares of Kishore Biyani-led Future Supply Chain Solutions Ltd closed 3.2% higher, at Rs685.80, after debuting on the stock exchanges on Monday.
The third-party logistics (3PL) company was listed on BSE at Rs674, up 1.5% over its issue price of Rs664 per share.
The initial public offering (IPO) of the logistics arm of Future Group was open for subscription from 5-8 December with a price band of Rs660-664 per share.
The issue was oversubscribed 7.56 times.
The company aimed to raise Rs650 crore through the share sale. Ahead of the IPO, analysts had said that the issue was reasonably priced.
They said the company has an asset-light business model, wherein the company leases out warehouses and certain vehicles which gives it the flexibility to customize services.
Over FY15-17, the company registered a revenue and net profit compound annual growth rate (CAGR) of 17% and 36%, respectively. Earnings before interest, tax, depreciation and amortisation (Ebitda) margins contracted to 13.2% in FY17 from 15.7% in FY15.
The offer will see a total stake dilution of 24.43%.
The company will not receive any funds raised from the issue.
The object of the issue is to achieve benefits of listing and enhance visibility and brand image along with providing liquidity to shareholders.
