VRL Logistics IPO subscribed 0.27 times
The company has finalized the allocation of 6,846,994 Equity Shares, in aggregate, at a price of Rs. 205 per Equity Share (upper end of the Price Band) amounting to Rs. 140.36 crore to 15 Anchor investors.
Apr 15, 2015 09:04 IST India Infoline News Service
A report said that the issue is valued at 38% premium or Rs 78 to the high end of price band.
The company has finalized the allocation of 6,846,994 Equity Shares, in aggregate, at a price of Rs. 205 per Equity Share (upper end of the Price Band) amounting to Rs. 140.36 crore to 15 Anchor investors.
The Price Band is fixed from Rs. 195 to Rs. 205 per Equity Share.The Bid/ Issue closes on Friday, April 17, 2015.
"At the upper end of Rs195-205 price range, the stock is valued at 14.7x FY16E EPS of Rs13.9. Peers like Gati and Transport Corporation of India Trade in the range of 18x-25x. We note that apart from plain vanilla surface logistics, these peers also provide niche services like express delivery, ecommerce delivery and supply chain management and therefore trade at higher multiples. Nevertheless, with the improving macroeconomic environment, contribution of freight transportation via road is poised to increase and VRL with its largest fleet size, superior track record, strong brand name, diverse client base, and vast management experience is all set to benefit from the opportunities provide by the sector", according to IIFL research.
"At the upper end of Rs195-205 price range, the stock is valued at 14.7x FY16E EPS of Rs13.9. Peers like Gati and Transport Corporation of India Trade in the range of 18x-25x. We note that apart from plain vanilla surface logistics, these peers also provide niche services like express delivery, ecommerce delivery and supply chain management and therefore trade at higher multiples. Nevertheless, with the improving macroeconomic environment, contribution of freight transportation via road is poised to increase and VRL with its largest fleet size, superior track record, strong brand name, diverse client base, and vast management experience is all set to benefit from the opportunities provide by the sector", according to IIFL research.
