Fidelity Investments International has picked up a 7% stake in Transport Corporation of India (TCI), the Delhi-based express logistics company, for Rs 53 crore. TCI will issue equity shares of Rs 2 face value to Fidelity Investments at Rs 105.25 per share, in accordance with Sebi guidelines for preferential issue.Post-issue, Fidelity’s stake in TCI would increase to nearly 10% of the paid up equity.
TCI’s executive director Vineet Agarwal said: “The amount raised will be utilised to fund the expansion of TCI, specifically for building capacity in the warehousing space and setting up information technology (IT) systems.” Earlier, in 2006, TCI had announced expansion plans requiring Rs 450 crore of investments in warehousing, fleet upgradation and expansion, shipping and IT systems.
TCI intends to raise another Rs 60-70 crore through sale of equity in the following year. “Our plan was to raise almost Rs 120 crore in two stages through equity dilution. The first stage has been completed. We will raise another Rs 70 crore within six to nine months,” said Mr Agarwal. The company claims it has already invested Rs 100 crore for expansion in FY07 and would be looking at investing another Rs 200 crore in the current fiscal.
Read more in The Economic Times article.
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