Gateway Distriparks jumps on buzz of rail unit IPO plan

Gateway Distriparks rose 3.86% to Rs 381.10 at 10:28 IST on BSE after a media report suggested that the company is aiming to list its rail unit.

Meanwhile, the BSE Sensex was down 71.30 points, or 0.25%, to 28,973.14.

On BSE, so far 31,000 shares were traded in the counter, compared with an average volume of 48,193 shares in the past one quarter.

The stock hit a high of Rs 384.90 and a low of Rs 375.05 so far during the day. The stock hit a record high of Rs 459.40 on 20 January 2015. The stock hit a 52-week low of Rs 158.75 on 16 April 2014.

The stock had underperformed the market over the past one month till 13 April 2015, falling 17.13% compared with 1.90% rise in the Sensex. The scrip had also underperformed the market in past one quarter, rising 1.48% as against Sensex's 5.90% rise.

The mid-cap company has an equity capital of Rs 108.73 crore. Face value per share is Rs 10.

According to the report, Gateway Distriparks plans to list Gateway Rail Freight, valued at nearly $500 million, by the end of the current financial year in March 2016.

In order to maintain its majority stake after the initial public offering (IPO), Gateway Distriparks is in talks with Blackstone to buyback a 5-7% stake in the unit, the report added.

On a consolidated basis, Gateway Distriparks' net profit rose 70.43% to Rs 54.35 crore on 10.16% rise in net sales to Rs 272.15 crore in Q3 December 2014 over Q3 December 2013.

Gateway Distriparks is the logistics facilitator with three verticals - Container Freight Stations (CFS), Inland Container Depots (ICD) with rail movement of containers to major maritime ports, and Cold Chain Storage and Logistics.

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