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A mid-sized logistics and warehousing company priced its initial public offering at the top of its indicated range on Thursday, capping a heavily subscribed book-building process that drew strong demand from both domestic and overseas institutional investors.
Strong Order Book
Northgate Logistics Holdings set its issue price at the upper end of its marketed range after the offer was oversubscribed several times over during the three-day bidding window, according to exchange data. The offering, one of the larger listings on India’s primary market so far this year, raised proceeds that the company said would fund warehouse expansion and fleet upgrades. Bankers on the deal said institutional demand was particularly robust, while the retail portion of the book also closed comfortably covered.
Market Backdrop
The pricing comes amid a steady run of new listings on India’s exchanges this year, as companies take advantage of buoyant secondary-market valuations and resilient investor appetite for growth-oriented sectors including logistics, consumer, and financial services. The national securities regulator has continued to emphasize stricter disclosure and pricing-transparency norms for new issuers, a trend bankers said has, if anything, supported investor confidence in recent offerings.
Shares are expected to begin trading on a when-issued basis in the coming days, with analysts pointing to the company’s exposure to e-commerce-linked warehousing demand as a key factor behind investor interest. Market watchers said the strong reception could encourage other logistics-sector firms to accelerate their own listing plans later this year.
