Allcargo Global Logistics to set up CFS at Chennai, Mundra, NCR

Mumbai, May 23 (UNI) Allcargo Global Logistics Limited, a logistics service provider involved in Multimodal Transport Operations (MTO), proposes to enter the capital market with a public issue of 20.79 lakh equity shares of Rs 10 each through book building process.

The price band for the issue, which is scheduled to open on June 1, has been fixed at Rs 625 to Rs 725 per equity share.

Briefing newspersons here today, Allcargo Global Logistics' Chief Operating Officer Ashit Desai said the proceeds of the issue -- amounting Rs 150.72 crore at the upper end of the price band -- will be deployed for setting up Container Freight Stations(CFS) and Integrated Container Depots(ICDs) at Chennai, Mundra and NCR (national capital region), besides taking care of the prepayment of loan availed from YES Bank.

That apart, Mr Desai said, the proceeds will be used for general corporate expenses including some acquisitions.

Replying to a question, he said the Company's decision to go for CFS at Chennai stems from the fact that its port has emerged as the second largest in terms of container traffic in India. Besides, Mr Desai added, the CFS near the Chennai port is intended to cater to the container traffic in the southern region.

The IPO constituted 10.26 per cent of the post issue paid-up capital of the Company. Enam Financial Consultants is the Book-Running Lead Manager (BRLM) to the issue, while Inga Advisors is co-BRLM and Intime Spectrum Registry is the Registrar to the issue.

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