Marg gets board's nod to raise Rs 3000 crore

Company has ongoing projects worth Rs 5,000 crore

The board of directors of city-based Marg Limited on Wednesday approved company's proposal to raise $500 million (around Rs 2,450 crore) and another Rs 500 crore through qualified institutional placements.

Company managing director GRK Reddy said Marg would raise $500 million by way of American depositary receipts, global depositary receipts, foreign currency convertible bonds and other financial instruments.

The infrastructure and real estate development company would use the proposed money to fund its ongoing projects worth Rs 5,000 crore.

These comprise Phase II expansion of Karaikal port, near Chennai, at an estimated cost of Rs 1,800 crore. The company is planning to increase the capacity to 21 million tonnes from the current five million tonnes by the end of last quarter next year. It has already achieved financial closure for the Rs 1,050-crore project.

Among others, the airport project at Bijapur in Karnataka and Marg Swarnabhoomi, a 1,000 acre mega township project near Chennai, are expected to be completed over the next three years.

Logistics solutions
Speaking after the annual general meeting, Reddy said to become an integrated infrastructure solution company, they had decided to offer logistics solutions through railway. For this, it would acquire railway wagons for its subsidiary Marg Logistics Ltd.

On the proposed power business, he said, “we may look at foraying into non-conventional energy. Our immediate focus would be wind and solar,” without giving any time frame for the proposed foray.

The company had sold its windmill business in 1996. It is also into solar business, but on a small scale.