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Allcargo raises Rs 100 cr through QIP

Private Equity backed Allcargo Global Logistics (AGL), a Mumbai based logistics firm, on Friday raised nearly Rs 100 crore through qualified institutional placement (QIP). The QIP proceeds will be used for acquisition in US and India, informed sources. Institutions to whom QIP was done include State Bank of India, Bajaj Alliance, Prudential and ING.

In September 2009,  New York-based private equity major Blackstone Group invested had invested Rs 142 crore in the company, raising its stake to over 11 per cent from 5.26 per cent stake earlier. Earlier in January 2006, New Vernon had picked up 6 per cent stake in AGL for Rs 60 crore.

In a filing to the stock exchanges, AGL had recently informed that it proposed to raise funds not exceeding $150 million equivalent to Rs 700 crore, to meet the long term needs of the company to augment long term resources for investing in expansion and development of its businesses, future acquisitions, capital expenditure, working capital requirements and general business purposes. 

The company is a full service logistics company and offers air, shipping, and container freight station logistics services. The company had posted 14 per cent rise in net profit to Rs 75 crore (Rs 66 crore) during first nine months ended December 2009.

Apart from expanding its presence organically, the company has been acquiring companies in different geographies. It acquired global logistic giant ECU Line and Hindustan Cargo Ltd in 2006 and 2007 respectively, expanding its presence across 59 countries in the world.

Source: Business Standard

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