Fidelity Investments International today announced its decision to pick up 10 per cent stake in logistics company Transport Corporation of India (TCIL) for Rs 52 crores.
"With this, the FII's stake in the company would come close to 10 per cent of paid up equity. The development comes in the light of the company's plans to expand and consolidate its supply chain and logistics business, both nationally and globally," says a TCIL release.
TCIL will raise the money to part finance its capital expansion plans worth Rs 440 crores. The FII will pick up the stake at Rs 105.25 per share for a face value of Rs 2 each.
"Out of our total capex plan of Rs 440 crores, we would be spending Rs 340 crores over a period of three years, beginning 2007-08 for investment in warehousing, fleet upgradation and expansion, shipping and IT systems," it quoted TCIL Vice Chairman and MD D P Agarwal as saying.
TCIL has already invested Rs 100 crore in the last financial year and has plans to invest Rs 200 crores this fiscal, it added.
(Source: Economic Times)
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