VRL to invest half of its IPO proceeds on fleet acquisitions

VRL Logistics Ltd plans to invest about half of its Rs 117 crore IPO proceeds in acquisition of new fleet for the company.
"The company would spend Rs 67 crore on acquisition of new fleet, Rs 28 crore for repayment of debts and rest would be spent on corporate purposes," VRL Logistics CFO Sunil Nalavadi said.
The company has fixed a price band of Rs 195 to Rs 205 per share for its proposed initial public offer (IPO), which will open on April 13.
"Post IPO, promoters stake would be reduced to 69 to 70 per cent and 25 per cent would be held by public and the rest 5 per cent would be held by investors," said VRL Logistics Chairman and Managing Director Vijay Shankeshwar.

The company has proposed to list on BSE and NSE both.
In 2013-14, the company had a revenue of Rs 1,503.8 crore with a growth rate of 12.6 per cent. Revenue in the first nine months of 2014-15 was Rs 1,279.4 crore.

The company has a goods transport fleet of around 4,000 vehicles in which VRL Logistics owns 3,546 vehicles.
It also provides luxury bus service in states such as Karnataka, Maharashtra, Goa, Andhra Pradesh, Telangana, Tamil Nadu, Gujarat and Rajasthan.
"Our 20 per cent revenue comes from the luxury service and we would maintain that ratio in future also," Nalavadi added.

Presently, VRL Logistics having a pan India network of 624 branches and 346 agencies.