Gateway Distriparks arm to raise Rs 300 crore from Blackstone

Gateway Distriparks Ltd has announced that the Boards of Directors of the Company and its subsidiary, Gateway Rail Freight Ltd ("GRFL") have approved the execution of a share subscription and shareholders agreement ("Agreement") with Blackstone GPV Capital Partners (Mauritius) V-H Ltd ("Blackstone") pursuant to which GRFL will raise funds to the extent of Rs 300 Crores by issue of Compulsorily Convertible Preference shares ("CCPS") to Blackstone, which, on conversion, will entitle Blackstone to acquire between 37.27% and 49.90% of the share capital of GRFL.

The Agreement also includes a call option of GDL to acquire the CCPS at the end of 5 years from the date of the investment and a put option of Blackstone to sell the CCPS to GDL at the end of ten years.

The Gateway Distriparks stock was trading at Rs.139.55, up by Rs.6 or 4.49%. The stock hit an intraday high of Rs.141 and low of Rs.134.

The total traded quantity was 245026 compared to 2 week average of 63800.

Source : Equity Bulls

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