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Business News/ News / India/  Gateway Distriparks completes acquisition of ICD Kashipur
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Gateway Distriparks completes acquisition of ICD Kashipur

ICD Kashipur will add additional volumes to the rail operations of GDL and will be connected to the Western Dedicated Freight Corridor via the company’s ICD in Gurgaon

Gateway Distriparks Limited File photo.Premium
Gateway Distriparks Limited File photo.

Gateway Distriparks Limited (GDL) on Friday completed the acquisition of Kashipur Infrastructure and Freight Terminal Private (KIFTPL), which owns and operates ICD Kashipur located in Uttarakhand.

“Spread over 41 acres, the ICD has three rail sidings and the target market in the region includes various industries such as paper products, wastepaper, chemicals, home furnishings, handicrafts, automotive parts, polyfilms, soda ash, and other industrial goods. ICD Kashipur will add additional volumes to the rail operations of GDL and will be connected to the Western Dedicated Freight Corridor via the company’s ICD in Gurgaon by utilizing GDL’s hub and spoke operations, and increasing the overall double stack volume for the company," GDL said in a press release.

As per the Share Purchase Agreement signed on 31st October 2022, GDL has purchased 99.92% of the shareholding of KIFTPL from its majority shareholders, Apollo LogiSolutions Limited, India Glycols Limited (IGL) and Kashipur Holdings Limited at an Enterprise Value of approximately Rs. 155.67 crores. “Accordingly, GDL has paid an aggregate cash consideration of approximately Rs. 144.47 crores to the majority shareholders of KIFTPL. The Enterprise Value has been adjusted on account of existing loans for an amount of approximately Rs. 11.20 crores," the press release added.

“At present, the monthly volume handled at this ICD is around 3,000 TEUs on average. We expect this to increase considerably in the next 12 months," said Prem Kishan Gupta, Chairman & Managing Director, GDL.

Gupta added that apart from the terminal income earned at ICD Kashipur in KIFTPL, GDL will earn significant revenue from rail transportation for these volumes by providing exclusive rail services to the ICD, which have already started earlier this month.

“With this acquisition, KIFTPL has become a subsidiary of the company, effective from today. Furthermore, the process to acquire the remaining 0.08% shareholding from Fourcee Infrastructure Equipments Private Limited, which is in liquidation, is underway," GDL said.

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Published: 23 Dec 2022, 07:45 PM IST
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