The Hindu Business Line : Fidelity pays Rs 52.6 cr for 7% stake in TCI

Logistics - Supply Chain Management
Markets - Foreign Institutional Investors
Corporate - Mergers & Acquisitions
Fidelity pays Rs 52.6 cr for 7% stake in TCI

Our Bureau

New Delhi, Aug 13 Fidelity Investments International has picked up close to seven per cent equity in the supply chain and logistics services company, Transport Corporation of India (TCI) for Rs 52.625 crore.

The company plans to expand and consolidate its supply chain and logistics business, both nationally and globally. Mr D.P. Agarwal, Vice-Chairman and Managing Director, TCI, stated: “The objective behind the issuance of equity shares is to partly meet the capex plans of the company and improve stakeholders’ valuations.”

According to a press release issued here today, TCI will issue equity shares to Fidelity Investments International, a foreign institutional investor, at a price of Rs 105.25 per share of face value of Rs 2 each, in cash aggregating to Rs 52.625 crore, in accordance with the guidelines for preferential issue issued by SEBI. When contacted, company representatives said Fidelity has acquired about seven per cent in the firm.

With this, the FII’s stake in the company would be close to 10 per cent of paid-up equity, said the release. “Out of our total capex plan of Rs 440 crore, we would be spending Rs 340 crore over three 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 2006-07 fiscal and is looking at investing Rs 200 crore in the current fiscal,” he further added.

TCI, with revenues of over Rs 1,200 crore, has a network of over 1,100 company owned offices.

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