The ₹2,600-crore IPO of Blackstone-backed Horizon Industrial Parks opened for subscription on August 17 and will close on August 19. The company has fixed the price band at ₹57-60 per share, with retail investors required to bid for a minimum of one lot comprising 250 equity shares and multiples thereafter. At the upper end of the price band, the minimum investment required is ₹15,000. The issue comprises entirely a fresh issue of shares with no offer-for-sale component, with 75% reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs) and 10% for retail investors. The subscription details for the first day will be available post 10 am, with allotment scheduled for August 20 and listing on August 24 on both NSE and BSE. JM Financial Ltd. serves as the book-running lead manager, while Kfin Technologies Ltd. acts as the registrar for the issue.
The Horizon Industrial Parks IPO is showing positive momentum in the grey market, with the latest grey market premium (GMP) standing at ₹3.5, translating to a 6% premium over the upper issue price of ₹60. Based on this GMP, the IPO is estimated to list at around ₹63.5 per share, indicating a potential listing gain of approximately ₹3.5 per share for investors at the upper price band. The grey market premium suggests expectations of a positive listing gain for the issue, with shares trading at ₹63.5 in the unofficial market ahead of the offer launch. However, investors should note that GMP does not represent official data and is based on speculation.
According to CNBC TV18 reports, Horizon Industrial Parks is strategically expanding beyond traditional warehousing into higher-margin industrial facilities and in-city assets. Industrial facilities typically command a 10-15% premium over warehousing, while in-city assets can generate 2.5-3 times more revenue, making this product mix shift a significant growth driver. CEO Urvish Rambhia noted that the company plans to develop its remaining 30 million square feet over the next 4-4.5 years, with the company currently operating 61 million square feet across 46 assets in 10 key markets. The company is also entering the in-city segment with a 6.5 million square feet platform, which can significantly improve the revenue mix as Horizon expands its presence in locations closer to consumers and businesses. Industrial customers are already becoming a larger part of new business, with around two-thirds of incremental business over the last two to three years coming from industrial customers, supported by trends such as China Plus One, Make in India and production-linked incentives.
Blackstone-backed Horizon Industrial Parks has successfully raised ₹1,168 crore from 54 anchor investors ahead of its ₹2,600-crore IPO. According to The Hindu BusinessLine, the anchor allocation was completed at ₹60 per share, with the company allocating 43.34 crore equity shares at the upper end of its IPO price band. The anchor investors included major global institutions such as Morgan Stanley, Carmignac, WhiteOak Capital, SBI Life Insurance, 360 ONE, Nuvama, Matthews, Poonawalla Vision Fund, PGIM India, JM Financial Mutual Fund, Edelweiss, Sundaram Mutual Fund, SBI General Insurance, Societe Generale, BNP Paribas, Matthews Emerging Markets Small Companies Fund, and SBI Capital Markets. The allocation demonstrated strong institutional interest with 3.88 crore shares allocated to six domestic mutual funds through 27 schemes, including WhiteOak Capital, Sundaram Mutual Fund, 360 ONE, PGIM India, JM Financial and Edelweiss. Additionally, SBI Life Insurance and Edelweiss Life Insurance were allocated 1.24 crore shares worth ₹75 crore.
According to the latest financial data, Horizon Industrial Parks reported total income of ₹767.84 crore in FY26, representing significant growth from ₹439.35 crore in FY25. However, the company recorded a profit after tax loss of ₹198.65 crore in FY26, compared to a loss of ₹143.08 crore in FY25. The company's EBITDA improved substantially to ₹607.8 crore in FY26 from ₹339.12 crore in FY25, demonstrating strong operational performance. CEO Urvish Rambhia highlighted that asset-level EBITDA margins are above 90% while corporate EBITDA margins are above 80%, with the reported losses largely due to book depreciation of around ₹250 crore. The company's operating margin climbed from around 68% to over 79% in two years, with cash from operations reaching ₹464 crore in FY26 against ₹119 crore two years ago. The ₹2,600 crore IPO, along with ₹1,650 crore raised before the prospectus filing, will bring total primary capital raised to ₹4,250 crore. The funds are expected to reduce net debt to around ₹2,500 crore and cut the company's interest burden by nearly two-thirds, with the company currently having a borrowing cost of around 8.1-8.2%.
CEO Urvish Rambhia expects the company to turn profitable at the net level around 2027-28 (FY28), supported by the strategic expansion into higher-margin segments. Once the full portfolio is developed, Horizon expects roughly one-third of its business to remain in warehousing, around 40% to come from industrial facilities and about 25% from its in-city network. The company is also building an ecosystem around its parks, including blue-collar housing, renewable energy, hospitality and skill centres, which could add to revenue over the next two to three years. The company currently has a total network of 61 million square feet across 46 assets in 10 key markets, with around 29 million square feet built today while the remaining 30 million square feet is expected to be developed over the next four to four-and-a-half years. The promoter group's stake will fall to 75.4% after the IPO from 88.74%, as the company is owned and managed by three Blackstone affiliates.
