VRL Logistics IPO has got 3 out of 5 by CRISIL (rating agency) and this rating/grading is Average fundamentals for a goods and passenger transportation services company IPO. The grade 3 indicates that the fundamentals of the IPO are Average compared to the other listed securities in India. The company is entering into primary market with an Initial Public Offer (IPO) of 2.35 crore Equity Shares of Rs 10 each which constitutes 25% of the fully diluted post-issue paid-up share capital. The premium of the issue will be decided through a 100% Book Building Process. The company will raise around Rs — crore through this IPO. Hubli-based firm VRL Logistics Limited is the largest private sector owner of commercial vehicles with a fleet of 2,573 trucks and 256 buses. VRL operates goods transportation services across 534 cities in 20 states and six union territories, supported by a strong network 436 self-owned branches and 423 exclusive franchise offices.
Company promoters are Vijay and Anand Sankeshwar. Currently, promoters of the company hold the entire 100% stake in the company. Promoters are going to divest 13.85% stake in the company through this IPO.
The proceeds of the IPO will be used by the company for new vehicle acquisitions (Rs.140 Cr), to retire debt to UCO Bank and Union Bank of India (to both Rs.110 Cr) and for other general corporate purposes.
Stay tuned to BelltheBull Blog for more news on VRL Logistics IPO !Google+