Future Supply Chain Solutions Ltd. IPO Review

Future Supply Chain Solutions IPO

Future Supply Chain Solutions IPO
6.9

Company Background

7.0/10

Price Band

6.0/10

Company Financials

7.0/10

IPO Industry Situation

8.0/10

Reliability

6.5/10

Pros

  • Consistent and Sound Profits
  • Logistics Space is Evolving Rapidly in India

Cons

  • Competitive Space Overall
  • Price band is relatively high
IPO NameFuture Supply Chain SolutionFuture Supply Chain Solution
Opening Date6th December, 2017
Shares Issue Size68,49,20068,49,200
Estimated IPO Size₹649.7 Crore
Day#No. of Shares SubscribedShares Subscription %age
Day 130%16,95,760
Day 272%49,62,000
Day 3TBATBA

Future Supply Chain Solutions Background

Future Supply Chain Solution Ltd. (FSCSL) is one of the largest third-party supply and logistics service providers of India. Future Supply Chain Solution Ltd. was incorporated in 2006. The company is promoted by the Future Group and Fung Capital.

Fung Capital is private equity arm of one of the world’s largest supply chain and distribution companies in Hong Kong.  The Future group is promoted by Kishore Biyani. Other companies which are promoted by Kishore Biyani are Future Retail Limited, Future Lifestyle Fashion Limited and Future consumer Limited.

Initially, Future Supply Chain Solution was established to provide the supply chain and logistics solutions to the group companies. But later on, the customer base of the company was diversified across various sectors outside the group companies.

Future Supply Chain Solution offers automated and IT-enabled warehousing, distribution and other logistics solutions to the corporates in retail, food and beverage, FMCG, fashion and apparel, automotive & engineering, electronics and technology, home and furniture, e-commerce, and healthcare, domain.

Pan India distribution network, warehousing structure, hub-and-spoke transportation model, and automated technology system give a competitive advantage to the company. The company comprehensively cover the supply chain needs of their customers and optimize the performance, efficiency, and cost of their supply chain needs.

The services offered by the Future Supply Chain Solution are in the areas of:

Contract Logistics

It includes warehousing, distribution and other value-added services. Until July 2017 for the contract logistics, there were 42 distribution centers across India which covers around 3.8 million square feet of warehouse space.

Express Logistics

It is a time-definite transportation service which includes point-to-point, less than truckload.

Temperature-Controlled Logistics

Future Supply Chain Solution also handle the distribution of perishable products with the help of cold chain warehousing and transportation solutions.

Future Supply Chain Solutions IPO Data Points

Future Supply Chain Solution Ltd. is coming with the maiden secondary IPO by an offer for sale from existing stakeholders.

It will provide listing gains and partial exit. Future Supply Chain Solution is offering 9,784,570 shares INR 10 face value. The price band of the listing is decided INR 660-664. This issue will fetch INR 645.78 to INR 649.7 crore according to the lower and upper price band of the issues.

The Future Supply Chain Solution IPO will open on 6th December 2017 and close on 8th December 2017. The lot size is 22 shares so you have to buy at least 22 shares or in the multiple of 22.

Edelweiss Financial, Nomura Financial Advisory & Securities (India) Pvt. Ltd., CLSA India Pvt. Ltd., IIFL Holdings Ltd., IDFC Bank Ltd., Link Intime India Pvt. Ltd. and Yes Securities (India) Ltd. are managing the issue.

IPO Basic Details
IPO Size₹649.7 Crore
Total Number of Share9,784,570 shares
Face Value₹10 per share
IPO Price Band₹660 - ₹664
Bid Lot22 Shares
Amount of 22 shares₹14,520
ExchangesNSE, BSE

 

Future Supply Chain Solutions Revenue and Other Financial Details

The company has a sound financial record and maintained a steady growth from the financial year 2013. In the financial year, 2016-17 the revenue of the company was INR 5,612 million and net profit was INR 458 million. From the financial year 2013-14 the revenue from operations has grown at a compounded annual growth rate (CAGR) of 17%.

The table below will give you a quick idea about the performance of Future Supply Chain Solution Ltd. in the past some years.

All Numbers are in INR Crore

FY 2012-13FY 2013-14FY 2014-15FY 2015-16FY 2016-17
Revenue354.1333.2410.7528.5577
Expenses353.7326.3373.9483.9518.8
Profit After Tax-4.24.224.729.545.6
Growth in Profit-200%488%19%55%

 

Some more Financial Details of the Future Supply Chain Solution according to the latest Financial Year

EPS (Earning Per Share): INR 11.24

P/E Ratio (Price/Earning): 58.72-59.07

NAV (Net Asset Value): INR 74.81 per share

RoNW (Return on Net Worth): 15.6%

Future Supply Chain Solution Ltd. is the first fully automated technical support system which gives the company an added advantage.

Future Supply Chain Solutions IPO Events

Future Supply Chain Solution Ltd. IPO will open on 6th December 2017 and close on 8th December 2017.

If you are allotted the shares then on 14th December 2017 the shares will be transferred to your Demat account otherwise the funds will be transferred to your account.

On 18 December the company will be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

IPO Open Date6th December, 2017
IPO Close Date8th December, 2017
Finalization of Basis of Allotment13th December, 2017
Initiation of Refunds14th December, 2017
Credit to Demat Accounts14th December, 2017
Listing at BSE and NSE18th December, 2017

 

Future Supply Chain Solutions Contact Information

You can check the website to get the more information about the company. You will also get a Quick Support option on the website where you can get answers to your queries.

The details of the offices are given below:

Our Recommendation (Buy/Avoid)

Logistics is the backbone of the economy, provides an efficient and cost-effective flow of good to different sectors. The logistics and supply chain industry in India is evolving at a rapid pace. Technology and infrastructure play an important role to reduce the logistic cost and providing effective services.  

Future Supply Chain Solution Ltd. is the key player in the logistic and supply chain management industry which has adopted latest technology and taking the first mover advantage in terms of technological advancement. The company is far ahead of its competitors.

Some of the strengths of the Future Supply Chain Solution Ltd. are

Technology and Automation

The adoption of technology and automated process placed the company at an advantageous condition within the supply chain management industry in India. The company has invested to implement the automated process and technology to increase the operating efficiency and capacity.

This allows improving the profitability and customer satisfaction. Some of the technology adoption examples are

  •    Dynamic Put-to-Light sortation system
  •    Radio Frequency enabled Warehouse Management System
  •    Transport Management System
  •    Vehicle Tracking System
  •     High-speed cross belt sorter
  •    Remote access to delivery vehicles
  •    Real-time data logging system

Distribution Network

Future Supply Chain Solution Ltd. is one of the largest service providers in the supply chain industry. The company has an extensive network of strategically located facilities which includes 46 distribution centers including 4 temperature controlled distribution centers.

The company has a pan India supply chain network by covering 11,228 pin code across 2 states and 5 union territories. The company lease most of the locations and delivery vehicles which enable the company to scale the operation quickly according to industry condition and customer demand.

Comprehensive solutions

The supply chain solution of the Future Supply Chain Solution covers a wide range of third-party logistics services such as express logistic, contract logistics, and temperature controlled logistic. The company also provide end to end customized logistics and supply chain solutions according to the customer requirement.

Infrastructure

Future Supply Chain Solution has a robust infrastructure that can tolerate extreme temperature, preserve customer inventory and maintain the quality working conditions. The temperature controlled warehousing facilities maintain the perishable goods in the frozen, chilled and ambient environment.

The scale of operations, advanced technology, reliability, and continuous improvement differentiate the company from competitors.

The company has a positive future outlook and have a scope of handsome growth in the long term as well as for short-term quick profits and exits. Logistic in India is around two times less efficient than USA and China so there is a huge scope for the technologically advanced company like Future Supply Chain Solution in India.

Recently, Future Supply Chain Solutions Ltd. has set up an Integrated Food Distribution center or IFDC in Kolkata that is going to cater multiple formats of food industry, including cold storage.

Furthermore, if you are looking to open an account, you can provide your details in the form below:

Lets Get Started

Summary
Date
Broker Name
Future Supply Chain Solutions
Overall Rating
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