Sical Logistics to raise USD 125 million via FCCBs, GDRs
Mumbai, Mar 2 (UNI) Sical Logistics plans to raise USD 125 million via a mix of foreign currency convertible bonds (FCCB) and global depository receipts (GDR), after cancelling an earlier plan for a rights issue of shares, preferential allotment and convertible warrants.
A general meeting of shareholders has been called on March 29, to pass the necessary resolutions for fund raising.
''The strategic context and shareholder value constitute the prime deciding factors in favor of the FCCB-GDR route,'' said Sical's Vice-Chairman Ashwin Muthiah.
The funds will be primarily used towards the coal and iron ore terminal project being set up on BOT basis at Ennore and container trains on all-India license for JNPT-Delhi, as also for three other strategic sectors -- offshore logistics, trucking and working capital.
Describing the FCCB and GDR-mix route to raise funds as a ''sensible option'' Mr Muthiah said that this was done after taking into account market valuation as well as Sical's business priorities, adding ''it increases the probability of our getting better valuations.'' In another development Director and COO logistics division R Ramakumar was appointed Sical's Managing Director following the resignation of the incumbent S Vasudevan, who will now be the Managing Director of the new entity consisting of the non-core divisions that are proposed to be hived off from Sical.
Sical Logistics is India's leading provider of integrated multi-modal logistics for bulk cargo-port terminals with its consolidated revenue in FY 05 at Rs 12.21 billion on an equity base of Rs 27.53 crore.
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