IndoSpace, India's biggest warehouse owner, picks bankers for $1B IPO
What's the story
IndoSpace, India's leading industrial warehouse developer and operator, is gearing up for its initial public offering (IPO). The company is backed by Everstone Capital and the Canada Pension Plan Investment Board. According to Moneycontrol, IndoSpace has hired Citi and Axis Capital as investment bankers for the IPO process. The public offer could raise as much as $1 billion.
Financial strategy
IPO will include primary and secondary share sales
The upcoming IPO will be a mix of primary and secondary share sales. The funds raised will be used to finance IndoSpace's future warehouse projects and provide a partial exit for existing investors. This move comes as warehousing companies, which initially considered the infrastructure investment trust (InvIT) route to monetize assets, are now looking at public offers for funding.
Business expansion
IndoSpace has invested over $3 billion since its inception
Founded in 2007 by Everstone Capital and Realterm, IndoSpace has invested over $3 billion in building more than 50 warehousing hubs across 11 cities. These facilities cater to over 150 clients from sectors such as manufacturing, electronics, e-commerce, retail, and automobiles. The company recently launched "IndoSpace Chakan V," its largest industrial park in India. It spans 188 acres and is backed by a $120 million investment.
Market trend
Warehousing companies are shifting funding strategies
IndoSpace's decision to go public comes amid a broader trend of warehousing companies shifting their funding strategies. Initially, many warehouse operators were looking at monetizing assets through InvITs. However, due to less-than-expected investor demand for this structure, bigger players like IndoSpace and Blackstone have now switched their strategy in favor of IPOs. Blackstone is also said to be working on an IPO for its warehouse platform, Horizon Industrial Parks.