Fidelity Investments International has picked up seven per cent (Rs 52.625 crore) equity in Transport Corporation of India (TCI), one of the leading supply chain and logistics services company.
When contacted, the company’s corporate communication executive confirmed the news saying, “Fidelity has acquired close to seven per cent share in TCI. The company gets the equity at a price of Rs 105.25 per share, in cash aggregating to Rs 52.625 crore, in accordance with the guidelines for preferential issue issued by Securities and Exchange Board of India (SEBI).”
TCI’s vice chairman and managing director DP Agarwal was not available to comment, though he confirmed in the release that “the objective behind the issuance of equity shares is to partly meet the ambitious capex plans of the company’s investment in warehousing, fleet upgradation and expansion, shipping, and IT systems.” The company has already invested Rs 100 crore in FY 2006-07 and is looking to invest Rs 200 crore in the current fiscal.
Group TCI, with revenues of over Rs 1,200 crore and an extensive network of over 1,100 company-owned offices, is India’s largest integrated supply chain and logistics solutions provider.