NDR Warehousing has taken a leap forward by filing a draft placement memorandum (DPM) with the Securities and Exchange Board of India (Sebi) to secure a hefty ₹1,165 crore through the InvIT.The primary purpose of these funds will be to repay construction-related loans. It is worth noting that this InvIT will be privately listed, signifying a groundbreaking milestone for a warehousing company.
NDR Warehousing, a logistics infrastructure company, has struck a remarkable deal, bagging a staggering ₹500 crores in funding from Investcorp, an esteemed investor hailing from Bahrain.
This injection of funds comes as a significant boost for the company, preceding its proposed infrastructure investment trust (InvIT) and generating substantial anticipation.
According to insiders, NDR Warehousing has taken a leap forward by filing a draft placement memorandum (DPM) with the Securities and Exchange Board of India (Sebi) to secure a hefty ₹1,165 crore through the InvIT.
The primary purpose of these funds will be to repay construction-related loans. It is worth noting that this InvIT will be privately listed, signifying a groundbreaking milestone for a warehousing company.
This recent funding marks the second investment made by Investcorp in NDR Warehousing, with a previous investment of $55 million just a year ago. The proposed InvIT represents a pivotal moment for the company, as it will be the pioneering listing of its kind for a warehousing company.
The DPM outlines that the offering will consist of a fresh issue amounting to ₹843 crores by NDR InvIT Trust, complemented by an offer for sale worth ₹322 crores by the selling unitholders.
Acting as the sponsor of the trust, NDR Warehousing will spearhead the endeavor, while NDR Invit Managers Pvt Ltd will dutifully serve as the trust’s investment manager. The responsibility of the trustee will be entrusted to Axis Trustee Services Ltd. The lead manager for the issue has been appointed as ICICI Securities.
Under the stewardship of N Amrutesh Reddy, the managing director of NDR Warehousing, the company has witnessed an astounding expansion. With its inception dating back to 1986, NDR Warehousing now boasts an impressive portfolio comprising 33 warehouses spanning an extensive leasable area of 16.91 million sqft across 12 cities. Bolstered by ambitious aspirations, the company intends to forge ahead with its plans to expand its warehousing and industrial parks nationwide, targeting an annual addition of 4-5 million sq ft.
Additionally, NDR Warehousing is actively exploring inorganic growth avenues and joint ventures to enhance its portfolio. Noteworthy clients of the company include industry giants such as Amazon, Flipkart, FedEx, Reliance Trends, Pepsi, and Godrej.
Furthermore, NDR Warehousing already possesses sizeable land holdings spanning 150 acres in key locations such as Mumbai, Chennai, NCR, and Bengaluru. The warehousing and logistics sector in India has been witnessing an upswing in demand, capturing the attention of private equity firms, sovereign funds, and pension funds, including CPPIB, Warburg Pincus, and Ivanhoe Cambridge, over the past five years.
Sankey Prasad, the chairman and managing director of real estate consultants Colliers India, has underscored the allure of the Indian warehousing segment for global investors. He has highlighted the potential it offers in both core and emerging assets. Prasad has also accentuated the promising growth trajectory of industrial warehousing and data centers, which are projected to thrive unabated throughout the year.
According to Colliers, the first quarter of 2023 witnessed a 20% year-on-year surge in investment inflows in industrial assets, soaring to $216.3 million, largely driven by foreign investments. Additionally, the segment observed an impressive 11% year-on-year growth, with a lease of 7.2 million sq ft in the same quarter.
