Allcargo Logistics IPO in Rs 625-725/shr band

Port-based logistics service provider Allcargo Global Logistics is planning to enter the capital market on June 1 with a public issue of 20.79 lakh equity share of Rs 10 each through the book-building process.

The price band has been fixed at Rs 625-725 per equity share of Rs 10 each. The issue closes on June 6. The issue will constitue 10.26% of the post issue paid-up capital of the company.

The company is planning to deploy the net proceeds of the issue for setting up of container freight stations (CFS) and inland container depot (ICD), prepayment of loan availed from Yes Bank and general corporate expenses including acquisitions.

The company is planning to set up CFS and ICD in Chennai, Mundra and the national capital region (NCR). At present, Allcargo has a CFS at Nhava Sheva in Navi Mumbai near Jawaharlal Nehru Port Trust (JNPT) with a capacity of handling 1,20,000 twenty foot equivalent units (TEUs).

"The company is planning to augment the capacity of Navi Mumbai CFS to handle 2,86,000 TEUs. The proposed CFSs in Chennai, Mundra and NCR will have capacity of 48,000 TEUs each," Shashi Kiran Shetty, chairman of Allcargo Global, said.