The Hindu Business Line : Gateway Distriparks launches IPO

GATEWAY Distriparks Ltd, engaged in providing container freight station (CFS) and inland container depot (ICD) services, is launching an initial public offering of 21 million equity shares of Rs 10 each at a price to be decided through the book-building route. The price band for the bidding process has been fixed between Rs 60 and Rs 72.

The issue opens on March 9 and closes on March 14. The offer comprises a fresh issue of 11 million equity shares and an offer for sale of 10 million existing equity shares by the shareholders of the company. It will represent 28 per cent of the fully diluted post-issue paid up equity capital.

Talking to reporters here on Saturday, Mr Gopinath Pillai, Chairman of the company, said the proceeds of the IPO would be used to repay the bridge loan from IDGC and to partly finance the expansion of its existing facilities, apart from funding acquisitions. The company will be repaying its bridge loans totalling Rs 37 crore. The company operates CFSs at Jawaharlal Nehru port and Chennai port and an ICD at Garhi. It is in the process of setting up a CFS at Vizag port. "We have a total capacity to handle 2.92 lakh twenty-foot equivalent unitsper annum. We see a lot of potential in this market, as Indian ports are increasingly going in for containerisation," Mr Pillai said.

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