Blackstone-Backed Horizon Industrial Parks Files Rs 2,600 Crore IPO With SEBI

Horizon Industrial Parks, backed by global private equity firm Blackstone, on Monday filed preliminary papers with markets regulator SEBI to raise Rs 2,600 crore through an initial public offering (IPO). The issue is entirely a fresh offer of equity shares, with no offer for sale (OFS) component. According to the draft red herring prospectus (DRHP), about Rs 2,250 crore from the proceeds will be used to repay borrowings.

Blackstone currently holds 89% stake in the company, the draft papers showed. Ahead of the public issue, the company has already raised nearly $200 million (around Rs 1,650 crore) in a pre-IPO round, with participation from investors such as 360 ONE, SBI Life Insurance, SBI, Radhakishan Damani, EAAA and DSP Investments.

Targeting a Total Fund Raise of Rs 4,250 Crore

Including the pre-IPO placement, Horizon is targeting a total fund raise of about Rs 4,250 crore ($500 million). Horizon Industrial Parks is an industrial and logistics infrastructure developer, owner and operator with a pan-India portfolio of about 60 million square feet spread across 46 assets in 10 cities.

Blackstone made its first acquisition in the platform in 2020 and has scaled it to the current size over the past five years. The company operates across fulfilment centres, industrial facilities and in-city logistics assets. Its portfolio is around 95% committed, with more than 100 customers, nearly 60% of which are Fortune 500 companies.

Merchant Bankers to the Issue

JM Financial, IIFL Capital Services, SBI Capital Markets and 360 ONE WAM are the merchant bankers to the issue. The IPO market in India has seen a significant surge in recent times, with several companies lining up to raise funds through public issues. The success of these IPOs will depend on various factors, including the company’s financial performance, industry trends, and overall market sentiment.

What Does This Mean for Indian Investors?

The IPO of Horizon Industrial Parks is a significant development for Indian investors, as it provides an opportunity to invest in a company with a strong track record of growth and a diversified portfolio of assets. The company’s focus on industrial and logistics infrastructure development is also in line with the government’s initiatives to promote the growth of the manufacturing sector and improve the country’s logistics infrastructure.

However, investors should also be cautious and carefully evaluate the company’s financial performance, management team, and industry trends before making an investment decision. It’s also important to keep an eye on the overall market sentiment and the performance of other IPOs in the market.

Key Takeaways

Horizon Industrial Parks has filed preliminary papers with SEBI to raise Rs 2,600 crore through an IPO.
The issue is entirely a fresh offer of equity shares, with no OFS component.
Blackstone currently holds 89% stake in the company.
The company has already raised nearly $200 million in a pre-IPO round.
The IPO market in India has seen a significant surge in recent times.

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