Blackstone to invest Rs 300 cr in Gateway Distriparks arm

Global private equity investment firm Blackstone Group today said it will invest Rs 300 crore in rail logistics solutions provider Gateway Rail Freight (GRFL) for funding its expansion plans.

The deal marks the ninth investment of Blackstone Group in the country in a period of four years and is the second one in the logistics sector.

"Infrastructure development is India's highest priority for achieving its target economic growth and also one of key investment themes for our investments in India. The logistics sector in India holds tremendous promise and is slated to experience significant growth," Blackstone Advisors India Chairman and Managing Director Akhil Gupta said here.

GRFL, the rail logistics arm of logistics firm Gateway Distriparks, would issue compulsorily convertible preference shares to Blackstone as per the agreement signed today, the company said in a statement.

Upon conversion of the shares, the private equity investor would be entitled to acquire between 37.27 per cent and 49.90 per cent in GRFL.

"We plan to invest the money to develop new terminals, deploy additional trains and road trailers, expand capacity at existing terminals and strengthen last mile connectivity. The investment comes as growth capital for the company," Gateway Rail Chairman and Managing Director Prem Kishan Gupta said.