Gati Ltd, a Hyderabad-based logistics firm, is raising up to Rs 120 crore ($19.5 million) through issue of securities, the company said on Tuesday. This is subject to necessary approvals from statutory authorities and shareholders.
The board of directors at its meeting held on January 24 approved the fundraising by way of issue of securities to Indian or foreign investors including QIBs/FIIs/VC funds or any other category of investors, it said.
Gati is into express cargo delivery and distribution and supply chain management solutions in India. It operates a fleet of 4,000 vehicles on road, and has over 7,000 plus business partners. The firm has offices in China, Singapore, Hong Kong, Thailand and Nepal and has plans to foray into other markets.
It recently raised Rs 150 crore ($24.45 million) from funds managed by Mandala Capital Ltd for its cold chain arm Gati Kausar India Ltd.
For the third quarter ended in December 2014, the firm reported a 60.9 per cent rise in its net profit to Rs 14 crore as against Rs 8.7 crore during the same period a year ago. Its consolidated income increased 14.43 per cent to Rs 428 crore for the quarter under consideration as compared with Rs 374 crore in the corresponding quarter of the previous year.
Gati's scrip was trading at Rs 275.80 each, up 0.25 per cent on BSE in a strong Mumbai market on Tuesday at 12.41 PM.
(Edited by Joby Puthuparampil Johnson)