Mumbai-based trucking and logistics company BLR Logistiks has revived its plans to scout for a strategic investor in a deal that would provide an exit to Reliance Capital, which currently owns around 30 per cent stake in the privately held company, The Economic Times reported quoting the company’s managing director Ashok Goel.
The company is expected to kick off the process by appointing a merchant banker for the proposed stake sale after the upcoming general elections and aims to close the deal by next year, Goel told the paper.
Besides providing an exit to the financial investor, the promoters of the company are also open to diluting majority stake to the prospective buyer, which could in turn be either through a fresh infusion of money or a stake sale by promoters.
The firm is keen on bringing a foreign logistics firm as a partner. “An international investor will be able to bring in more customers, operational efficiency and better IT systems. These companies can also demand better margins from clients since they have more bargaining power due to their reach and scale,” according to Goel.
In a private equity investment, Reliance Capital had picked 31 per cent stake in the logistics company in January 2007 for Rs 50 crore and has been looking to exit the firm, but failed to close a transaction due to mismatch in asking valuation from what investors are willing to shell out.
Earlier in 2011 too, BLR had tried to provide an exit route to the investor, but the deal did not materialise.
Presently, BLR Logistiks earns around 80 per cent of its revenues from the trucking segment and the rest from warehousing and international freight forwarding. In fiscal 2013, the company had registered revenue of Rs 300 crore and is eying a revenue growth of nearly 15 per cent this year.
Another major logistics firm Gati Ltd recently said that it is looking for a strategic partner or a financial investor for its cold chain business Gati Kausar.
(Edited by Joby Puthuparampil Johnson)