Financial Daily from THE HINDU group of publications
Saturday, Jan 28, 2006
Financial Daily from THE HINDU group of publications Saturday, Jan 28, 2006 |
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Corporate
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Preferential Allotments Logistics - Supply Chain Management Gati plans pref offer to overseas body — Board clears $20-m offering Our Bureau
Hyderabad , Jan 27 THE board of directors of Gati Ltd, the Hyderabad-based logistics player, on Friday approved a resolution to issue 16 lakh equity shares to Infrastructure Fund of India Ltd, an overseas body corporate managed by AMP Capital Investors. AMP Capital is a leading global investment manager with $66 billion of assets under management. It is a long-term investor with a strong tradition in supporting companies and management teams in their growth and expansion plans, Gati said in a release. Besides enabling the company to become a debt-free entity, the entry of a financial investor like AMP Capital would help it improve liquidity in the share market and increase market capitalisation, it added. The board has also approved a proposal to offer four lakh convertible warrants to them on a preferential basis and issue of five lakh convertible warrants to the promoters' group on a preferential basis. All the prices for these issues would be in accordance with the formulae prescribed by the SEBI. Further, the board has approved a proposal for a global offering of $20 million through an issue of global depository receipts (GDRs) or foreign currency convertible bonds (FCCBs). The Gati Managing Director and CEO, Mr Mahendra Agarwal, said: "These funds will be used for the expansion of Gati's domestic and international business, capital investments in warehousing, IT, shipping business, etc., to fulfill Gati's aim of becoming a Rs 1,000-crore and debt-free company by 2009, when Gati will be completing 20 years." The Gati board has also approved the split of shares from the face value of Rs 10 into five shares of Rs 2 each. For the quarter ended December 2005, the company reported higher revenue of Rs 115.08 crore (Rs 92.81 crore) and net profit of Rs 5.73 crore (Rs 2.6 crore), yielding a diluted EPS of Rs 4.44 (Rs 3.06) on equity of Rs 12.53 crore (Rs 8.36 crore).
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