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Hubballi-based logistics major VRL Logistics Limited is planning to expand its fleet by adding 248 new trucks at a cost of Rs 67 crore. The company currently operates close to 4,000 trucks and buses.
“Our goods transportation business serves a broad range of industries including the fast moving consumer goods sector as well as food, textiles, apparel, furniture, appliances, pharma products among others. We have a fleet of around 4,000 vehicles and with the money we are raising from the IPO, we will buy another 248 vehicles from Ashok Leyland to augment our fleet size,” VRL Logistics Chairman Vijay Sankeshwar said.
The company is entering the capital markets to raise Rs 117 crore through the fresh issue of equity shares on April 15, 2015. It is also making an offer for sale of up to 17.11 million shares by NSR-PE Mauritius LLC, Vijay Sankeshwar and Anand Sankeshwar, directors on the company. Through both these offerings, the company is looking to raise around Rs 468 crore. The price band is fixed from Rs 195 to Rs 205 per equity share. The minimum bid lot is 65 shares.
Apart from buying new vehicles, the company also plans to repay its debt amounting to Rs 28 crore and use the balance fund for other business purposes, Sankeshwar said.
VRL Logistics is a pan-India surface logistics and parcel delivery service provider. It provides general parcel and priority parcel delivery, courier and full-truckload services through its network in 28 states and four union territories.
In 2012, the private equity player New Silk Route had picked up a 22.5 per cent equity for Rs 175 crore. Through this issue, NSR will divest 17.5 per cent stake and retain remaining 5 per cent. The promoter holding will come down to 70 per cent from the present 77.5 per cent.
The company also provides luxury bus services across Karnataka, Maharashtra, Goa, Andhra Pradesh, Telangana, Tamil Nadu, Gujarat and Rajasthan. It also operates car carrier vehicles for transportation of cars, vehicles for liquid transportation, as well as a courier service business across the state of Karnataka.
