BIG BUCKS

Mumbai, Feb. 20: Allcargo Global is planning to raise up to Rs 242.40 crore from the Blackstone group by issuing shares, debentures and warrants on a preferential basis.

Blackstone will initially have a little over 10 per cent in Allcargo, though it has the option of raising its stake through market purchases up to 14.99 per cent.

Allcargo will issue 1,000 equity shares and 1,081,081 debentures, convertible into an equal number of equity shares at Rs 934 each to Blackstone. This will be done on completion of 18 months from the date of issuance.

Allcargo will also issue 1,513,514 warrants, convertible into an equal number of equity shares at the option of the investors within 18 months from the date of issuance, at a price of between Rs 934 and Rs 1,284 per warrant.

“It has been really fulfilling to have our business strength endorsed by a fund of the stature of Blackstone. This, I believe, is true value creation for the stakeholders of the company who will be able to reap the benefits of this association in the years to come,” Shashi Kiran Shetty, chairman and managing director of Allcargo Global, said.

Allcargo will seek shareholders’ approval for the transaction on March 19.

The investment banking arm of Kotak Mahindra Capital Company Ltd, CitiGroup and Collins Stewart Inga Pvt Ltd, were the joint advisers to the transaction.

The Allcargo scrip rose over 8 per cent to close at Rs 772.50 on the BSE today. The price of Rs 934 is, therefore, at a premium of 21 per cent to the closing price.