Infra India Holdings to buy 6.35% in Aegis Logistics

Mumbai-based Aegis Logistics is selling a 6.35% stake to Kaup Capital's Infrastructure India Holdings Fund LLC for Rs 68.27 crore.

Aegis is a listed player which provides logistics services in oil, gas and chemical segments across the country. Aegis has called for an extra-ordinary general meeting (EGM) on March 23 for shareholders approval.

The stake to Infrastructure India Holdings is being sold at Rs 322 per share on a preferential allotment basis. The shares are being sold at a 12% premium to Aegis' closing price of Rs 287.3 on Friday.

Aegis has a market capitalisation of nearly Rs 900 crore at its Friday's closing price and the stock price has reached a 52-week high Rs 416.8.

Aegis had sought permission of its board to raise Rs 100 crore through private placement basis including allotment under Qualified Institutional Placement (QIP). The fresh funding will be deployed into a number of port terminal infrastructure projects, which Aegis plans to develop around the coastline of India, according to a statement.

Aegis Logistics entered into an agreement in November last year with Port Pipavav to build a six lakh kilolitre (kl) oil terminal at a cost of Rs 430 crore. It also said that it plans to invest Rs 2,000 crore in the next 5-7 years in port infrastructure including the Pipavav project. Aegis currently operates two terminals in Mumbai with a capacity of 2.50 lakh kl and one in Kochi with capacity of 55,000 kl. Aegis acquired Shell Gas (LPG) India last year. Shale has a gas infrastructure facility at Pipavav Port and a LPG filling plant in Gujarat.

Aegis reported revenues of Rs 1,118.14 crore for the first nine months of FY11 as compared to revenues of Rs 224.1 crore for the same period in FY10. But the net profit for the period remained nearly the same
for FY11 at Rs 30.25 crore as compared to Rs 31.62 crore in FY10.

Kaup Capital has previously invested in Hathway Cable & Datacom Ltd., one of India's largest cable-television operator that went public in Feb 2010.

By: Madhav Chanchani