Horizon Industrial Parks IPO Reaches 0.24 Times Subscription on Second Day

The ₹2,600 crore initial public offering by Blackstone-backed Horizon Industrial Parks saw cumulative subscription reach 0.24 times by the end of its second day of bidding. The issue, which is entirely a fresh issue of shares, is scheduled to close on Wednesday, August 19.

NEW DELHI: The ₹2,600 crore initial public offering (IPO) of Horizon Industrial Parks Limited gained traction on its second day of bidding on Tuesday, with the cumulative subscription reaching 0.24 times by the close of the session. The figure marks an increase from the 0.14 times subscription recorded at the end of the first day.

The public issue features a price band set between ₹57 and ₹60 per share, with a minimum bid lot requirement of 250 shares. The offering consists entirely of a fresh issue of shares, with net proceeds of up to ₹2,250 crore designated specifically for debt repayment.

Qualified institutional buyers (QIBs), who hold a 75 per cent allocation share in the public issue, remained a closely watched category. By the close of Day 2, the QIB segment stood at 0.21 times subscribed. Domestic financial institutions, mutual funds, and other institutional participants collectively placed bids for 2,85,73,750 shares against the 13,65,78,947 shares reserved for the category.

Across all categories, total bids were received for 5,94,41,750 shares against the 25,13,56,273 shares on offer in the public issue portion. The IPO is set to close on Wednesday, August 19.

According to brokerage notes from SBI Securities, the planned deleveraging of debt using IPO proceeds is expected to lower interest costs. This financial restructuring is projected to assist the company in achieving profit after tax (PAT) break-even by the 2027 financial year.

Backed by global investment firm Blackstone, Horizon Industrial Parks currently operates 45 assets spanning 10 cities, maintaining a committed occupancy rate of 93.6 per cent. Based on the upper limit of the price band, the issue is valued at 37.5 times its estimated FY26 enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA).

"The focus on debt reduction through fresh capital is a clear strategic step for capital-intensive sectors like industrial real estate and logistics parks. Utilizing the majority of IPO proceeds to deleverage the balance sheet can significantly lower recurring interest burdens, which is crucial for achieving profitability milestones like PAT break-even by FY27. Institutional participation in the remaining bidding hours will be critical in determining the final pricing outcome for this Blackstone-backed offering." — Dr. Shishir Gupta, Founder & CEO, StartupLanes