Fidelity picks up stake in TCI

Mumbai, Aug 14: Asia's leading integrated supply Chain, Transport Corporation of India Ltd (TCI) today said it will issue Equity Shares, ten per cent of its paid up capital, to an FII, Fidelity Investments International at a price of Rs 105.25 per share of face value of Rs2 each in the company, in cash aggregating to Rs 52.62 crore.

The company has offered stake to the Foreign Institutional Investor (FII) in order to expand and consolidate its supply chain and logistics business, both nationally and globally, the company said in a release issued here.

According to Mr. D.P. Agarwal, Vice Chairman and Managing Director TCI ''The objective behind the issuance of equity shares is to partly meet the ambitious Capex plans of the Company and improve stakeholders' valuations.'' ''Out of our total Capex plan of Rs.440 crore, we would be spending Rs. 340 crores over a period of 3 years starting 2007-08, for investment in warehousing, fleet upgradation and expansion, shipping and IT systems''.

The company has already invested Rs.100 crore in FY 2006-07 and is looking at investing Rs.200 crores in the current fiscal. With better infrastructure, enhanced service mix and customer centric focus- the company would like to become the Preferred Supply Chain Provider, he added.

UNI