Horizon Industrial Parks advances IPO with 58.6 million square foot portfolio
India’s largest industrial and logistics developer is heading to the public markets, offering investors exposure to a vast asset base despite heavy leverage and a lack of current profitability.
Horizon Industrial Parks is advancing its initial public offering, bringing an extensive portfolio of logistics and manufacturing real estate to the public markets. Incorporated in 2009, the company has established itself as the country's largest developer, owner, and operator of industrial infrastructure by total network, according to Jones Lang LaSalle Property Consultants.
The company currently manages 45 logistics and industrial assets spread across 10 major Indian cities. This network totals 58.6 million square feet and is divided into three core categories. These include fulfilment centres for warehousing, industrial facilities for manufacturing occupiers, and in-city centres designed for urban distribution and last-mile logistics.
Beyond standard real estate, Horizon provides turnkey solutions, solar energy infrastructure, cold storage facilities, and on-site staff accommodation. This diversified service offering allows the company to capture value across the entire supply chain for its corporate tenants.
For prospective investors, the financial picture presents a mix of operational scaling and significant leverage. The company has yet to record net profits, making traditional price-to-earnings multiples inapplicable for valuation. Instead, the offering is priced at a price-to-sales multiple of 25.
Debt remains a central feature of the balance sheet. Net debt nearly doubled to 6,246.5 crore rupees from 3,524.6 crore rupees over the recent period. However, this heavier borrowing appears to have driven incremental operating profit, moderating the enterprise value-to-Ebitda multiple to 38.7 times in FY26 from 137.4 times in FY24.
Management expects profitability metrics to improve substantially following the repayment of debt using proceeds from the listing. The burden of financing has already begun to ease relative to top-line growth. Finance costs as a percentage of revenue fell to 78 per cent in FY26, down from 92.1 per cent in FY24.
Furthermore, interest outgo relative to earnings before interest and taxes dropped to 89 per cent in FY26, compared with 139 per cent two years prior. Because there are no direct listed peers in the Indian market, institutional investors will have to weigh these deleveraging prospects against the premium valuation multiples and the inherent risks of a pre-profit infrastructure developer.
