Sohanlal Commodity Management plans for Rs 500-cr IPO

Sohanlal Commodity Management Pvt. Ltd.(SLCM), an agri-logistics company plans to come with a Rs 500 cr initial public offer (IPO) which will allow an exit for the private equity (PE) investors in the company. 

The company handles over 400 commodities including Cotton,Barley,Bajra, Castor Seeds, Wheat, Pulses, Maize, Spices, Aloe Vera, etc., across pan India and is a one stop solution in providing warehousing services such as Scientific Storage for agricultural commodities, handling day-to-day operations, Fumigation, Testing and Certification and Funding against Storage Receipts. The services are provided to Farmers, Processors, Traders, Commodity Exchanges and the Government. 

The company manages its network and operations leveraging 1,300 warehouses. According to media reports the company  will be using the funds to expand abroad and the IPO will also provide early investors an exit opportunity. The IPO can hit markets within next 9 months according to media reports. 

SLCM is a Delhi based company managing a total capacity of over 3.3 million metric tonnes spread over 18.5 million square feet area. The company will be eyeing on the increased agri-production and changes in government policies which will facilitate growth for the company. 

Looking at the huge potential for the agri-logistics in India several foreign investors have shown interest in the sector with Temasek already investing in Jaipur based Star Agri Warehousing.