Sical to raise 125 million USD by FCCB-GDR mix

Chennai, Mar 2 (UNI) Sical Logistics Ltd today announced that the Board of Directors had approved a resolution to raise 125 million USD through a mix of foreign currency covertible bonds (FCCB) and global depository receipts (GDRs).

The funds would primarily be for the coal and iron ore terminal project being set up on 'built operate transfer' basis at Ennore, offshore logistics, trucking and working capital, among other things, a release here said.

An earlier plan for a rights issue of shares, preferential allotment and convertible warrants had been cancelled. An extraordinary general meeting shall be convened on March 29 to pass the necessary resolutions for fund raising.

Sical Vice Chairman Ashwin Muthiah said the board considered strategic context and shareholder value as the decisive factors for the FCCB-GDR route.

''We believe that, taking into account market valuation and Sical's business priorities, an FCCB-GDR mix is a sensible option.

One, it is relatively fast, two, timing-wise being closer to market, we increase the probability of getting better valuations three, geographically our investor base gets more international.'' He sais Sical, with its integrated model for multi-modal bulk logistics, was ''uniquely'' positioned to leverage its current leadership position and customer relationships in the fast-growing bulk logistics opportunity.

The Board also appointed Logistic Division Director and COO R Ramkumar as Sical's new Managing Director, the release noted.

Sical's consolidated revenue in 2004-05 was Rs 12.21 billion on an equity base of Rs 275.33 million.

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