Gateway Distriparks gets Blackstone notice to initiate steps for Gateway Rail IPO

Gateway Distriparks to list its subsidiary Gateway Rail Freight. The notice to exchanges by Gateway Distriparks did not disclose details of the equity stake by Blackstone or timeline for the IPO

GatewayRailमुंबई Mumbai: Port-based logistics company Gateway Distriparks Ltd will sell shares of its subsidiary company Gateway Rail Freight Ltd through an initial public offer (IPO). In its filing to BSE, Gateway Distriparks said in response to a notice received from private equity firm Blackstone GPV Capital Partners’ letter dated 16 January that the company has decided to initiate steps necessary for the IPO of Gateway Rail Freight.

Gateway Distriparks Ltd has announced that the Board of Directors of the Company at its meeting held on January 29, 2015, in response to the notice received from Blackstone GPV Capital Partners (Investor) vide their letter dated Jan 16, 2015, have decided to initiate steps necessary for the IPO of the Company’s subsidiary Company, Gateway Rail Freight Limited, in accordance with the terms of the Share Subscription & Shareholders Agreement (SSHA) dated Nov 09, 2009 and applicable rules & regulations.

In November 2009, New York-based Blackstone Group Lp had invested Rs.300 crore in Gateway Rail Freight. Blackstone had said it will acquire between 37.27% and 49.90% of Gateway Rail in preferential shares based on certain performance parameters. Gateway Distriparks could buy back the shares at the end of five years from the date of investment or Blackstone could sell it back to Gateway Distriparks at the end of 10 years. The notice to exchanges by Gateway Distriparks did not disclose details of the equity stake by Blackstone or timeline for the IPO. Gateway Rail handles all the rail operations of the parent group. It provides inter-modal logistics and operates its own rail-linked inland container depots at Garhi-Harsaru (Haryana), Ludhiana (Punjab) and Kalamboli (Navi Mumbai). Gateway Rail owns and operates a fleet of 21 trains and 235 plus road trailers at its rail-linked terminals, according to the Spokesperson.  In August last year, Snowman Logistics Ltd, a cold chain transportation company promoted by Gateway Distriparks, raised Rs.197 crore from the sale of 42 million equity shares in an IPO, which was subscribed 60 times.

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