In a significant move for India's industrial real estate sector, Horizon Industrial Parks, a platform backed by global investment giant Blackstone, has taken a decisive step towards a public listing. The company on Monday submitted its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi), seeking to raise Rs 2,600 crore through an initial public offering (IPO).
A Fresh Equity Issue to Fuel Growth and Reduce Debt
The proposed public offering is structured entirely as a fresh issue of equity shares. This means the company will issue new shares to investors, and there is no offer-for-sale (OFS) component where existing shareholders sell their stake. According to the draft papers, a substantial portion of the net proceeds, approximately Rs 2,250 crore, is earmarked for the repayment of borrowings. This strategic move is expected to strengthen the company's balance sheet and reduce its interest costs, positioning it for more agile future expansion.
Strong Pre-IPO Backing and Blackstone's Majority Stake
Even before hitting the public markets, Horizon Industrial Parks has demonstrated strong investor confidence. The company successfully secured nearly USD 200 million (around Rs 1,650 crore) in a pre-IPO funding round. This round saw participation from a mix of prominent institutional and individual investors, including 360 ONE, SBI Life Insurance, SBI, Radhakishan Damani, EAAA, and DSP Investments. When combined with the IPO, the total fundraise target stands at about Rs 4,250 crore (USD 500 million). Blackstone, which made its first acquisition in the platform in 2020, currently holds a commanding 89 per cent stake in Horizon Industrial Parks.
Pan-India Portfolio and Impressive Client Roster
Horizon Industrial Parks operates as a developer, owner, and operator of industrial and logistics infrastructure. It boasts a massive pan-India portfolio of roughly 60 million square feet spread across 46 assets in 10 major cities. The company's assets include fulfilment centres, large-scale industrial facilities, and strategically located in-city logistics hubs. A key indicator of its operational strength is its high occupancy rate, with the portfolio being around 95 per cent committed. It serves a diverse base of over 100 customers, and notably, nearly 60 per cent of these are Fortune 500 companies, underscoring the quality and reliability of its infrastructure.
The merchant bankers managing this significant public issue are JM Financial, IIFL Capital Services, SBI Capital Markets, and 360 ONE WAM. This IPO marks a pivotal moment, showcasing how Blackstone has scaled the platform over the past five years into a major force in India's booming logistics real estate sector, which is riding high on the growth of e-commerce and organized manufacturing.
