GEPL Capital has recommended to 'Subscribe' the initial public offer (IPO) of Snowman Logistics (SLL).
Snowman Logistics is an integrated temperature controlled logistics services provider with 23 temperature controlled warehouses across 14 locations in India including Serampore (near Kolkata), Taloja (near Mumbai), Palwal (near Delhi), Mevalurkuppam (near Chennai) and Bengaluru capable of warehousing 58,543 pallets and 3,000 ambient pallets as of Mar. 31, 2014.
The company is issuing 42 million shares of face value Rs 10 each in the price band of Rs 44-47 s share. The objective of the IPO is to set up new temperature-controlled warehouses and for long term working capital. The company has fixed price band at Rs 44-47 per share for the issue, which will be opened till August 28.
Commenting on the SLL IPO, GEPL Capital said, ''At the upper price band of Rs 47 the company is trading at 35x its FY14 diluted EPS of Rs 1.35. The stock enjoys premium in terms of valuation as it is the only player in the organized cold storage industry with huge business potential & its pan India presence. Hence we recommend to Subscribe to the IPO.
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