Ahead of the IPO, Urvish Rambhia, Whole-Time Director & CEO of Horizon Industrial Parks, and Asheesh Mohta, Head of Real Estate India at Blackstone, said the company has built the scale and operating platform needed to fund future expansion internally.
Horizon Industrial Parks owns, develops and manages warehouses, fulfilment centres, industrial parks and in-city logistics facilities. The IPO, which opens on August 17 and closes on August 19, has a price band of ₹57-60 per share.
Mohta added that Horizon has built the largest company at scale with a fully integrated management team and lands fully paid for.
He said Blackstone does not anticipate any capital raise going forward, making this an appropriate stage to list the business.
Mohta noted that Horizon has grown to nearly 60 million square feet, with around half of the portfolio already developed. He added that India’s listed real estate market offers opportunities different from Blackstone’s logistics businesses in other countries, making an IPO the preferred route.
Explaining the business model, Rambhia said Horizon develops Grade A industrial and warehousing parks and leases them to companies across sectors, including e-commerce, manufacturing and consumer goods.
“You are building Grade A institutional industrial and warehousing parks, and leasing it out,” Rambhia said.Addressing investor concerns over losses, Rambhia said the company used debt alongside Blackstone’s equity to expand rapidly over the last five years. He expects the financial profile to improve after the IPO.
“Your debt effectively goes down two-thirds, which was the biggest expenditure on the book,” he said.
According to Rambhia, the company has expanded nearly fivefold in the last five years, while revenue has almost doubled over the past few years. Lower finance costs following recapitalisation are expected to support the business going forward.
For the full interview, watch the accompanying video
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