VRL Logistics steered successfully down the IPO route last month. Other companies are eyeing fundraising opportunities, but will they race ahead or hit regulatory roadblocks? Vandana Chatlani reports

In 1976, Vijay Sankeshwar set up a small business in Gadag, a small town in north Karnataka. What began as a humble enterprise with a single truck evolved into VRL Logistics – a thriving logistics and transport company and India’s largest fleet owner with close to 4,000 vehicles.

Last month, VRL launched its initial public offering with tremendous results. Priced at ₹205 per share, the stock was 74.26 times oversubscribed, receiving bids for 1.2 billion shares, against 16.2 million on offer, from qualified institutional buyers (QIBs), high net worth individuals and other investors.

In the end, VRL issued 23.1 million shares for proceeds of ₹4.73 billion (US$75 million). On the day of listing, 30 April, the shares opened at ₹288, and ended the day 43% above the issue price.

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