SNOWMAN

LOGISTICS
LIMITED
Group 2
Aaryan Gupta: 19D070001
Deepanshu Demla: 22M2335
Johnson Joseph: 22M2345
Karmarkar Anagha: 22M2348
Gaurav Boralkar: 22M2330
AGENDA
1. Details of the deal
2. Reasons for the acquisition
3. Performance Analysis
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DEAL INTRODUCTION
Adani Logistics Limited completed the acquisition of 26% stake in Snowman
Logistics Limited
Target Company: Snowman Logistics Stock Market Reaction:  
Limited (NSE: SNOWMAN) * Target Co.'s share price increased by 10% on
the announcement day.  
Acquirer Company: Adani Logistics * Acquirer Co.'s share price increased by 5%
Limited (NSE: ADANILOG)  on the announcement day.  
 
Tendering Period: 07-Jan-20 to 21-Jan-20  
PAC: Adani Ports and Special Economic  
Zone Limited Number of Shares Proposed to
be Acquired: 6,72,54,119 Equity Shares  
Type of Offer: Open Offer  
Percentage of Shares Proposed to
Date of Public Announcement: be Acquired: 26%  
02-Jan-20  
Response Level: 1.4 times  
Offer Shares: 4,34,42,879 Equity Shares   
Pre- and Post-Shareholding of Acquirer in
Offer Price: INR 44 per share  Target Company:  
* Pre-offer: 0%  
* Post-offer: 26%  
Offer Size: INR 1,911,486,676 (assuming
full acceptance)
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REASONS FOR ACQUISITION

FROM THE PERSPECTIVE OF ADANI LOGISTICS
• To enter the cold chain logistics market: Adani Logistics is a major player in the logistics
industry in India. However, it did not have a significant presence in the cold chain logistics
market. The acquisition of Snowman Logistics will give Adani Logistics a strong foothold in
this growing market.

• To expand its reach: Snowman Logistics has a pan-India presence with a network of
warehouses and cold storage facilities across the country. The acquisition will help Adani
Logistics to expand its reach and service its customers better.

• To gain access to Snowman Logistics' technology and expertise: Snowman Logistics is a

technology-driven company with a strong track record of innovation. The acquisition will help
Adani Logistics to gain access to Snowman Logistics' technology and expertise,
which will help it to improve its own operations.

• To reduce competition: The cold chain logistics market in India is highly fragmented. The
acquisition of Snowman Logistics will help Adani Logistics to reduce competition and
consolidate its position in the market.
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REASONS FOR ACQUISITION

FROM THE PERSPECTIVE OF SNOWMAN LOGISTICS
• To get access to Adani's resources and network: Adani is a large and well-diversified
conglomerate with a strong financial position. The acquisition will give Snowman Logistics
access to Adani's resources and network, which will help it to grow its business.

• To gain a strategic advantage: The acquisition will give Snowman Logistics a strategic
advantage over its competitors. It will help the company to expand its reach, improve its
operations, and reduce competition.

• To create a win-win situation: The acquisition will become a win-win situation for both
companies. Adani Logistics will gain a foothold in the cold chain logistics market, while
Snowman Logistics will gain access to Adani's resources and network.
 PERFORMANCE ANALYSIS - 6

FINANCIAL
Year Net Total ROE
Ended Income Equity
Mar-22 1.68 421.79 0.40%
Mar-21 0.06 419.84 0.01%
Mar-20 -15.01 419.69 -3.58%
Mar-19 9.72 435.04 2.23%
Mar-18 -3.56 425.28 -0.84%
Mar-17 -4.93 428.67 -1.15%

 Adani announced the deal in Dec 2019 and subsequently

acquired open market stake of ~26%. In May 2020, it was
considering renegotiating the price of ~40% stake it was
supposed to buy from the promoters. It never acquired a
controlling stake in the firm.
 The firm has not utilised shareholders' funds properly as can be seen from poor ROE over the years
 The acquisition didn't lead to any immediate improvement in ROE, in fact ROE fell substantially in year ended Mar 2020. The ROE has improved
slightly in 2021 and 2022 but still remains poor
 PERFORMANCE ANALYSIS -
MARKET

• Since Adani Ports couldn’t get the promoter stake

in Snowman Logistics Ltd., the management
control didn’t change and cannot be attributed to Ratio FY 23 FY 22 FY 21 FY 20 FY 19 FY 18 FY 17
the acquisition (only the public 26% stake)
ROA 1.85% 0.24% 0.01% -2.49% 1.69% -0.60% -0.82%
• One reason for the improved performance is the
EPS 0.80 0.10 0 -0.9 0.58 -0.21 -0.30
company's focus on expanding its warehousing
facilities and transportation capabilities. PE 42.40 348.12 13368 -34.51 55.01 -225.31 -213.53
Snowman Logistics have been able to attract Stock Price 34 35 48 31 32 48 63
more clients and increase its market share. Returns -2.85% -27% 54% -3.12% -33.34% -23.81% -
• The decline in FY-20 and FY-21 could be
attributed to the impact of CoVID-19 in the
logistics sector. 
• Company gave a dividend (Rs. 1 per share) only
in FY 2022-23.

7
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SOURCES
• Company Annual Reports
• https://www.moneycontrol.com/financials/snowmanlogistics/ratiosVI/
SL17
• https://economictimes.indiatimes.com/markets/stocks/news/adani-logi
stics-further-reduces-stake-in-snowman-logistics/articleshow/8001237
9.cms?from=mdr
• https://www.livemint.com/companies/news/adani-forays-into-cold-
chain-logistics-with-rs-296-cr-acquisition-of-snowman-logistics-
11577471325294.html

ANNUAL REPORT & CALCULATIONS

THANK YOU
Mirjam Nilsson​
mirjam@contoso.com
www.contoso.com