Gateway Distriparks to raise funds by way of Rights Issue aggregating to approximately Rs. 116 crores

Gateway Distriparks Limited (GDL) (the "Company") an integrated intermodal logistics service provider in India has approved the proposal to raise funds through issue of equity shares ("Rights Equity Shares") on a rights basis ("Issue") aggregating to approx. Rs. 116 crores (assuming full subscription) and has filled the Letter of Offer with the Securities and Exchange Board of India yesterday.

The terms of the proposed Issue are as follows:

a. Rights Issue price: Rs. 72 per Rights Equity Share (including a premium of Rs. 62 per Rights Equity Share over face value of Rs. 10 per equity share)

b. Rights entitlement ratio: 4:27 i.e. 4 Rights Equity Shares for every 27 Equity Shares held by eligible equity shareholders of the Company as on the record date

c. Number of Rights Equity Shares to be issued: 16,107,859 Rights Equity Shares. Post the Issue, the Company's issue, subscribed and paid-up share capital will comprise of 12,48,35,908 equity shares of face value of Rs. 10 each (assuming full subscription)

d. Issue period: The Issue opening date will be Thursday, 30 July 2020 and the Issue will close on Thursday, 13 August 2020 (both days inclusive)

The board of directors of the Company has fixed Friday, July 24, 2020 as the record date for the purpose of determining the shareholders of the company who will be eligible to apply in the Issue.

Commenting on the same, Mr. Prem Kishan Gupta, Chairman & Managing Director, commented, " We have prepaid Rs. 135 crores of Non-Convertible Debenturesin the recent past and the proposed rights issue will enable us further to reduce our debt. Accordingly, the proposed rights issue will help deleverage our balance sheet."

Shares of GATEWAY DISTRIPARKS LTD. was last trading in BSE at Rs.90.75 as compared to the previous close of Rs. 87.9. The total number of shares traded during the day was 17479 in over 498 trades.

The stock hit an intraday high of Rs. 92.15 and intraday low of 87.15. The net turnover during the day was Rs. 1584730.

Source : Equity Bulls

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