New Delhi, Feb 20 (UNI) Allcargo Global Logistics Ltd (AGL) today said its board in its meeting held yesterday has approved raising Rs 242.4 crore through preferential issue of shares, warrants and debentures to Private Equity firm Blackstone Group.
The amount will be raised by Allcargo through an issue of 1,000 equity shares of Rs 10 each at a price of Rs 934 per share, said a statement.
The company will also issue 1,081,081 Debentures of Rs 10 each at a price of Rs 934 per FCCD.
Warrants amounting to 1,513,514 of Rs 10 each at a price ranging between Rs 934 to Rs 1,284 per Warrant will be issued to Blackstone.
On subscription of Warrant, investors will pay Rs 194 per warrant to Blackstone and its affiliates.
Blackstone has also expressed its intention to independently purchase additional shares of the Company from the open market.
Blackstone however would maintain an overall cap of less than 14.99 per cent share holding on a fully diluted equity basis.
Of the total investment deal aggregating to Rs 242.4 crore, Blackstone and its affiliates will infuse Rs 130.42 crore on subscription of the equity shares, debentures and warrants.
The debentures and warrants are convertible into one equity share each before the expiry of 18 months from date of subscription.
While the conversion price of the debenture is at issue price, the conversion of the warrants are linked to the Company's performance (consolidated EBIDTA of CY 2008).
''I am confident that with this investment by Blackstone and their involvement in AGL, we will be able to further explore the immense opportunities in the logistics space in India and globally'' company CMD Shashi Kiran Shetty said.
The Investment Banking arm of Kotak Mahindra Capital Company Ltd, CitiGroup and Collins Stewart Inga Pvt Ltd acted as joint advisors to the above transaction.
Established in 1993, Allcargo has emerged as a leading Logistics service provider with business in multi-modal transport operations, container freight stations, project cargo handling, airfreight and transport logistics UNI PBB RL DS1300