Gateway Distriparks: Leading the IPO road

Shares of Gateway Distriparks are up nearly 7% at Rs. 247 per share, on an afternoon when broader markets are trading higher by close to a percent. Its 54% subsidiary, Snowman Logistics Limited, which was so far unlisted, is planning to enter the primary market with its IPO of 4.2 crore shares of Rs 10 each, in the price band of Rs. 44 to 47 per share, during 26th to 28th August 2014.

Thus, the IPO, which aims to raise Rs. 197 crore at the upper price band, will be the maiden IPO to hit the market post the new Government was formed at the Centre. This IPO will be closely watched by other primary market hopefuls, to gauge investor appetite, specially the retail participation, before they firm up listing plans.

Gateway Distriparks’ holding the cold chain warehousing and logistics company will drop to 40.2%, as public float will increase to 25.2%. Snowman will command market cap of close to Rs. 800 crore. Thus, Gateway’s 40% will be valued at around Rs. 320 crore. Its current market cap stands at Rs. 2,690 crore.