Horizon Industrial

IPO Size: Rs. 2,600 cr, entirely Fresh Issue

• For repaying Rs. 2,250 cr debt of Rs. 4,500 cr net debt, as of 31.3.26

Price band: Rs. 57-60 per share

• Raised Rs. 1,650 cr via pre-IPO at Rs. 60 per share in Dec 2025

M cap: Rs. 17,297 cr, implying 15% dilution

• Only 10% allocation for retail, as company is loss making since FY23

IPO Date: Mon 17^th Aug to Wed 19^th Aug 2026, Listing Mon 24^th Aug 2026

Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.

 

‘Grade A’ Industrial and Logistics Developer

Horizon Industrial Parks is a 6-year-old Mumbai-headquartered Blackstone-promoted pure-play warehouse and industrial facility leasing company. It owns a pan-India network of 45 ‘Grade A’ assets across 10 cities, aggregating 58.58 million square feet of total network.

Of these, 28.55 million sq ft is operational, as of date, under 3 offerings:

1. Fulfillment centers (warehouse): 16.34 million sq ft with 92% committed occupancy  
2. Industrial facilities: 11.42 million sq ft with 96% committed occupancy
3. Multi-use in-city centers: 0.79 million sq ft operational network with 100% committed occupancy. It aims 6.9 million sq feet across 17 in-city assets in 7 cities 

Company serves 118 clients across manufacturing, auto, FMCG, renewable energy, retailers like e-commerce companies etc.

 

Organic Growth Guidance

Over the next 4-5 years, Horizon aims to develop the balance ~30 million sq ft land asset and make it operational. Estimated capex, at average cost of Rs. 2,200 per sq ft, is close to Rs.6,600 cr, to be funded through cash flows from operations and possibly fresh debt in future. Thus, 28.55 mn sq ft operational network will double, with addition of ~6 mn sq ft per annum.

 

Financial Performance

For the past 4 years, company’s cash flow from operations has risen from Rs. 75 cr in FY23 to Rs. 516 cr in FY26, as more assets get operational. In FY27, revenue stood at Rs. 691 cr, with EBITDA of Rs. 532 cr, close to cash from operations. Due to high interest cost and depreciation of Rs. 540 cr and Rs. 270 cr respectively in FY26, bottomline was a net loss of Rs. 204 cr, on an equity of Rs. 2,450 cr (face value Rs. 10 each). It may return to the black in FY28E.

 

Expensive Pricing

Horizon’s m cap of Rs. 17,297 cr leads to an Enterprise Value of Rs. 19,541 cr, factoring in net debt pf Rs. 2,244 cr post repayment.

Comparing Horizon with office co-working space players like Awfis, Smartworks etc will be inappropriate as former is an asset-owner, unlike the co-working companies.

Parent Blackstone pioneered listing real estate investment trusts (REITs) in India, with Embassy REIT being the debut listing in 2019. Given the similarity of business model, asset ownership and high occupancy, Horizon Industrial Parks IPO can be benchmarked against REITs, for yield comparison.

Assuming 40% EBITDA growth, FY27E estimated EBITDA of approximately Rs. 750 cr implies an EV/EBITDA multiple of 26x. This is roughly a 4% yield, which is much lower than 6-7% yield of REITs.

Even on FY28E EBITDA of Rs. 1,000 cr, on an optimistic basis, one year forward EV/EBITDA multiple of the 19x is steep. Thus, IPO is priced at a unjustified premium.

 

Promoter Track Record

While Blackstone’s track record as promoter has been impressive for REITs (Embassy, Nexus, KRT, Bagmane), its last IPO of International Gemological Institute is still ruling below IPO price after 1.5 years of listing.