Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / Pristine Logistics in talks to raise Rs400 crore from PE investors
BackBack

Pristine Logistics in talks to raise Rs400 crore from PE investors

Pristine Logistics to use funds to upgrade infrastructure at its freight terminals

CDC Group-backed Pristine Logistics builds and operates rail freight terminals across northern, central and eastern India.Premium
CDC Group-backed Pristine Logistics builds and operates rail freight terminals across northern, central and eastern India.

Mumbai: CDC-backed logistics services firm Pristine Logistics & Infraprojects Pvt. Ltd has started talks to raise up to Rs400 crore from private equity investors, at least two people aware of the development said.

“Pristine Logistics has appointed investment bank Spark Capital to advise them on the fund raise. The company has initiated the process and has started reaching out to private equity and infrastructure investors. They plan to raise around Rs300-400 crore in this round of fund raising," said one of the two people mentioned above, requesting anonymity as the talks are private.

The CDC Group-backed Pristine Logistics builds and operates rail freight terminals across northern, central and eastern parts of India, which provide handling, warehousing and transport services for businesses using the Indian Railways network for freight transport. The company will use the funds to expand and upgrade infrastructure at its freight terminals, the person quoted above added.

In 2015 CDC Group, the UK government’s development finance institution, invested $25 million in Pristine Logistics. The firm operates a private freight terminal (PFT) and an inland container depot near Kanpur in Uttar Pradesh. It also owns and operates PFTs at other locations such as Cuttack in Odisha, Ludhiana in Punjab and Indore in Madhya Pradesh.

It operates a multi-modal logistics park at Bihta near Patna in Bihar. It is also developing a mega food park, maize processing centre and agri logistics hub at Mansi in Bihar.

According to data from the company’s filings with the registrar of companies, it had a consolidated revenue of Rs73.59 crore in 2015-16, against Rs67.89 crore a year earlier. The company reported a loss of Rs5.49 crore in 2015-16, against a loss of Rs4.36 crore a year earlier.

A spokesperson for Pristine Logistics declined to comment on the development.

“CDC will not be in a position to comment on deal-specific details," said Srini Nagarajan, managing director and head of South Asia, in an email response.

The company recently expanded its business by acquiring the container train operating licence of Anil Ambani-controlled Reliance Infrastructure Ltd. Pristine will operate container trains for the remaining 13 years of the 20-year period, The Hindu BusinessLine reported on 17 January.

With tailwinds such as the impending implementation of the goods and services tax (GST), several logistics businesses are out in the market, seeking funds from investors. Earlier in March, Mint reported that e-commerce-focused logistics firm Ecom Express has initiated the process of raising up to $150 million.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

ABOUT THE AUTHOR
Swaraj Singh Dhanjal
" Based in Mumbai, Swaraj Singh Dhanjal is responsible for Mint’s corporate news coverage. For the past eight years he has been writing on the biggest deals in private equity, venture capital, IPO market and corporate mergers and acquisitions. An engineer and an MBA, he started his journalism career in 2014 with Mint. "
Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 24 Mar 2017, 12:56 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App