Thursday, December 28, 2006

TCI exploring financing options for Rs 450 cr expansion

Transport Corporation of India (TCI), an integrated supply chain and logistics solutions provider, is considering a private equity placement to fund its Rs 450 crore expansion plans, reports Business Standard.

The company is also exploring qualified institutional placement (QIP) mechanism and foreign currency convertible bonds (FCCBs), besides private equity placement.

The company will raise Rs 125 crore through equity, Rs 129 crore through debt and the balance via internal accruals.

The funds will be utilized for expanding the capacity of its various divisions in the next four years. The company plans to invest Rs 150 million for expanding its warehousing capacity, Rs 100 crore for acquiring one ship and Rs 500 million in wind power generation.

As part of future plans, it is also looking to diversify its business into running container trains, following the relaxation of container rail operations by the railways.

Read article from Business Standard

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