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