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Informist, Friday, Aug 23, 2024

 

--Patel Integrated ED: To use rights issue proceeds to retire debt 
--Patel Integrated ED: Hope to bring rights issue "very soon" 
--Patel Integrated ED: Got NSE, BSE nod for rights issue 
--Patel Integrated ED: Plan to raise 100 mln rupees via rights issue 
--Patel Integrated ED: Aim to monetise real estate worth 1 bln rupees 
 

By Sunil Raghu

 

AHMEDABAD – Patel Integrated Logistics Ltd is likely to decide on monetising its land bank worth 1 bln rupees across the country in the next two quarters, its Executive Director Mahesh Folga told Informist.

 

The air cargo aggregator company, which began operations in 1959 as Patel Roadways, currently operates across 100 locations in the country. Over the years, it has accumulated several parcels of land and buildings, including in the "prime area of Mumbai".

 

As the land parcels are not necessary for current operations, the company is looking to monetise them either by hiving them off into a separate business through a demerger or jointly developing them. The company hopes to decide on the land monetisation in the next couple of quarters, Folga said.

 

The company is also planning to raise 100 mln by way of rights issue to retire its long-term debt. The company made term loan repayments of 49 mln rupees in 2023-24 (Apr-Mar) and has to repay 38 mln rupees in the current financial year. Folga said that the company is hoping to price the rights issue at a premium to the current market price. Shares of Patel Integrated Logistics ended at 25.82 rupees on the National Stock Exchange today, up 1.2% from the previous close.

 

Folga said the rights issue has already received approval from the National Stock Exchange and the Bombay Stock Exchange and will be notified "very soon".

 

On the operational front, the company handled 14,535 tn of air cargo in Apr-Jun and hopes to achieve a run rate of 5,000 tn per month in the current financial year ending March, he said. The company expects the air cargo business to grow with the number of airports likely to go up from 140 currently to 220 as proposed by the government.

 

Patel Integrated Logistics claims to be the largest player in air cargo movement, with a market share higher than the airline companies in similar business.  End

 

Edited by Saji George Titus

 

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