Snowman Logistics Marks 13% Rise, Touches 52-week high on heavy volumes

Snowman Logistics shares have soared 13 percent to Rs.67 on the National Stock Exchange (NSE) on Tuesday following about more than 20 percent of the company's total equity changed hands. The stock was trading close to its 52-week high level of Rs 70, which touched on December 11. Till 02.24 pm, about 39.13 million equity shares, representing 23 percent of the total equity of Snowman Logistics, changed hands on the NSE, reveals the exchange data showed. At present, the stock was trading 13 percent higher at Rs 66.35, against a 0.42 percent rise in the Nifty50 index.

Adani Logistics, a wholly-owned subsidiary of Adani Ports and SEZ, has been offloading its stake in Snowman Logistics through the open market post the signing of a settlement deal in July 2020.
However, in December, Adani Logistics has traded 20.57 million equity shares, which marks 12.31 percent of total equity, of Snowman Logistics through bulk deals on the NSE till Monday, December 28, the exchange data displayed. Still, the names of the buyers were not ascertained immediately.

In September, Adani Logistics held a 26 percent stake or 43.4 million equity shares of Snowman Logistics, the shareholding pattern data showed.On the other hand, the board of directors of Snowman Logistics at its meeting held on December 21 approved to raise funds up to Rs 250 crore through qualified institutions placement (QIP) issue.

As the company is focusing on the capacity expansion (addition of 12,000 pallets over the next one year), and is setting up dedicated facilities for the e-commerce players such as Amazon, Flipkart and increasing focus on margin-accretive segments that include pharmaceuticals, India Ratings and Research (Ind-Ra) foresees that Snowman Logistics’ business profile would develop and its financial profile to would remain strong in the medium term.