Gateway Distriparks plans $120 mn GDR float

Gateway Distriparks (GDL) plans to issue global depository receipts (GDRs) worth $120 million. The issue will have a green-shoe option of 10 per cent.

The proceeds of the float would be used for setting up a Rs 100-crore greenfield container freight station (CFS) at Jawaharlal Nehru Port Trust (JNPT), Mumbai, and another one at the Kochi Port.

"We have filed documents with the Luxembourg Stock Exchange for issuing GDRs or foreign currency convertible bonds (FCCBs) of up to $120 million. We have appointed Citigroup and CLSA as managers for the issue," Capt Kapil Anand, chief executive officer, Gateway Distriparks, said.

Asked when the float would happen, Anand declined to comment saying, "Work is under way to expedite the issue formalities."

He said the proposed greenfield CFS in 60-70 acres at JNPT is in addition to the existing one in Nhava Sheva.

The initial investment in the Kochi CFS would be Rs 15 crore and this would be scaled up later on, he said.

"We will also invest over Rs 100 crore in the inland container depot (ICD) facility at Garhi Harsaru near Gurgaon," Anand said.

Earlier, the company had signed an agreement with PSU Container Corporation of India Ltd (Concor) for providing ICD facility and rail connectivity to various gateway ports for export and import from the Gurgaon facility.

Gateway Distriparks has registered 27 per cent year-on-year growth in container traffic at 104,112 twenty foot equivalent units (TEUs) during the six-month period ending September 30.

According to sources, the company is also planning to bid for running container trains on domestic railway network following the government's decision to open up rail container freight transportation.

"This needs heavy investment. The company will mainly look at running container freight trains in routes like New Delhi-JNPT (Mumbai) and New Delhi-Mundra (Gujarat), which are the busiest routes at present," a source said.

Meanwhile, Gateway Distriparks is planning to increase the authorised share capital from Rs 90 crore to Rs 110 crore by creating new two crore equity shares of Rs 10 each. The company would also borrow up to Rs 500 crore from the market for its expansion plans, the source said.