CONTINENTAL WAREHOUSING CORPORATION (NHAVA SEVA) LIMITED , incorporated on May 23, 1997 at Mumbai as a public limited company, has received SEBI approval for IPO.
THE OFFER consists OF A FRESH ISSUE OF UP TO [?] EQUITY SHARES AGGREGATING UP TO Rs.4,18.80 Crores (THE “FRESH ISSUE”) AND AN OFFER FOR SALE OF UP TO 798,603 EQUITY SHARES.
The IPO will offer an exit to its PE investors : Warburg Pincus and Abraaj Capital. Existing shareholders plan to offload 13,676,820 shares in the IPO through an offer for sale . IFC Washington is also an investor in the company but will not participate in the IPO.
Issue Opens on:22 March 2017 ( Tentative)
Issue Closes on: 24 March 2017 ( Tentative
Issue Type: Book Built Issue IPO
@Fresh Issue of [.] Equity Shares of Rs 10 aggregating up to Rs 418.80 Cr
@ Offer for Sale of 798,603 Equity Shares of Rs 10 aggregating up to Rs [.] Cr
Face Value: Rs 10 Per Equity Share
Price Band : Rs. – Rs. Per Equity Share
Minimum Order Quantity:
Listing proposed at: BSE, NSE
Objects of the IPO:
1) to retire debt Rs . 210 crores,
2) purchase of equipments Rs.63.5 crores and
3) construct warehouses at Ahmedabad and Panipat (Rs 63.9 crores)
About the company & its business:
CWC an integrated multimodal logistics company in India, owning and operating cargo handling and storage facilities and providing express logistics and third-party logistics services. For and as of the years ended March 31, 2016, 2015 and 2014, its total revenues were Rs 7,093.99 million, Rs 7,357.86 million and Rs 6,795.53 million, respectively,
In its cargo handling business, it owns and operates a geographically spread network of container freight stations (“CFSs”), inland container depots (“ICDs”) and private freight terminals (“PFTs”) across India. It currently has ten facilities comprising four CFSs and three ICDs which are co-located with three PFTs. Two of its ICDs are expected to commence
operations during the quarter ending December 31, 2016. Its properties, including these facilities are spread over an aggregate area of approximately 360 acres.
Its first CFS at Madhavaram in Chennai, which it had taken on lease, was commissioned in January 2005. CWC currently has four operational CFSs located at Navi Mumbai near the JN port, Madhavaram and Red Hills in Chennai near the Chennai port, and Tuticorin near the V. O. Chidambarnar port. During the financial year 2015, these three ports accounted for
6.6 million TEUs or 82.7% of all container traffic handled at major ports in India. It owns
and operates co-located ICDs and PFTs at Thimmapur near Hyderabad, and in Panipat and Ahmedabad. It also has warehouses located at Indore, Kakinada and Visakhapatnam spread over an aggregate area of approximately 31,000 sq. m.
Across its facilities, it offers one-stop services including cargo handling and maintenance, transportation and storage services and value added services.
Its CFSs at Navi Mumbai, Chennai and Tuticorin have bonded warehouses and reefer
points for the storage and handling of temperature sensitive products, container terminals for the storage of containers and container yards where we provide storage and repair of empty containers to shipping lines. It has also set up cold rooms at Navi Mumbai and Chennai CFSs. At all its CFSs, it provides full container load (“FCL”) solutions and has designated areas for the consolidation of less than container load (“LCL”) containers.
Its co-located ICD and PFT facility at Thimmapur near Hyderabad, which it operates through its subsidiary, Continental Multimodal Terminals Limited (“CMTL”), was India’s first PFT facility .It has also set up colocated ICD and PFT facilities at Ahmedabad and Panipat, which commenced their PFT operations in January and February 2016, respectively and expects to commence ICD operations by December, 2016. Further, it is currently in the process of setting up co-located ICD and PFT facilities at Chennai and Bengaluru, both of which are expected to be commissioned by March 2018.
Its customers include shipping lines, customs house agents, importers, exporters and other logistics service providers. For the financial years 2016, 2015 and 2014, the total container volume handled at all four CFSs was 194,293 TEUs, 165,791 TEUs, and 154,466 TEUs, respectively.
For the financial years 2016 and 2015, its co-located ICD and PFT facility at Thimmapur handled total container volumes of 12,060 TEUs and 10,610 TEUs and break bulk cargo of 862,485 tons and 598,780 tons, respectively. Further, for the financial years 2016 and 2015, its PFT facility at Thimmapur handled 452 trains and 395 trains, respectively.
Its wholly owned subsidiary Delex Cargo India Private Limited (“Delex”), is an integrated logistics service provider that provides end to end domestic solutions including third party logistic solutions and warehouse management services, domestic distribution, express logistics, last mile delivery services, clearing and forwarding services and cargo handling services. Delex was awarded the Best Air Freight Service Provider of the Year at the 8th Express, Logistics and Supply Chain Leadership Awards in September 2014.
Entry Barriers to this business
The CFS and ICD industry is moderately capital intensive. With a typical capital requirement of Rs 1 to 1.3 billion (including land cost), the threat of new entrants in this industry is moderate according to CRISIL Research. However, limited availability of land at strategic locations near the port acts as a barrier to entry due to the high land prices and difficulties in land acquisition. For example, land prices and availability near JN Port and Chennai ports act as high entry barriers. Familiarity with the container logistics industry, relationship with container terminal operators, shipping lines, consolidators, logistics services providers among others is also imperative for attracting market share.
Total Revenue ( in millions)
Net Profit as Restated( in millions)
2015-16 Rs. 515.90
As of March 31, 2016, the net asset value per Equity Share was Rs 110.76 as per the Company’s Restated Consolidated balancesheet.
Its Registered Office is at 405, Windfall, Sahar Plaza Complex, Andheri Kurla Road, J.B. Nagar, Andheri (East), Mumbai 400 059; Tel: (91 22) 6111 6999; Fax: (91 22) 6111 6910 & Corporate Office is at D No. 1088, Khopta village, Uran taluka, Raigad district, Navi Mumbai 400 702