Future Supply Chain IPO is set to open for subscription on December 6, with a price band of Rs 660-664 per share.

Company details: Future Supply Chain Solutions Ltd is one of the largest third-party logistics service provider in India. Their services includes automated and IT-enabled warehousing, distribution and other logistics solutions. Future Supply Chain serves customers in various sectors which includes retail, automotive, fast-moving consumer goods, e-commerce, healthcare and electronics.

Future Supply Chain IPO Details:

• Issue Open: Dec 6, 2017 – Dec 8, 2017
• Issue Type: Book Built Issue IPO
• Issue Size: 9,784,570 Equity Shares of Rs 10 aggregating up to Rs 649.70 Cr
• Face Value: Rs 10 Per Equity Share
• Issue Price: Rs 660 – Rs 664 Per Equity Share
• Market Lot: 22 Shares
• Minimum Order Quantity: 22 Shares
• Listing At: BSE, NSE

Objects of the Issue :-

1. Achieve the benefit of listing the Equity Shares on the Stock Exchanges;
2. Sale of Equity Shares by the Selling Shareholders;
3. Enhance its stability and brand image and provide liquidity to its existing shareholders.

Strengths of Company

• FSC has experienced promoters (both in retailing & sourcing), who have been closely involved in the overall business strategy. Further, the promoters are supported by an experienced & qualified management team.
• The major customers other than group companies include ITC, P&G, Hitachi, McCain Foods (India), etc. FSC bills its group companies on cost plus mark-up basis while it bills the other customers on per piece per unit basis.
• FSC has an asset light logistics model as currently the entire warehouses are leased & company only invests in equipment’s required in warehouse.

Risk Factors / Reasons not to invest in Future Supply Chain IPO

• There is a moderate client concentration risk as Future group companies contributed around 62% to revenue in FY17.
• Profitability margins in the future would depend on its ability to cater to customers outside the group.
• The operating cycle of FSC is elongated mainly on the account of relatively longer credit extended to group companies.

Future Supply Chain IPO Grey market premium on 30th November is 70-75 rupees

Disclaimer : We are not involve in buying and selling of IPO forms in IPO Grey market.Study the fundamentals of the company before applying for the IPO.