Gati Limited to raise Rs 120 crore for expanding e-commerce business

MUMBAI: Logistics company Gati is raising up to Rs 120 crore for expanding its e-commerce delivery network by issuing securities to Indian or foreign investors, it said in a regulatory filing on BSE.

The company said the funds will primarily be used for e-commerce expansion and also for Foreign Currency Convertible Debentures (FCCB) settlement, in a statement to ET. The company has a net debt of Rs 446 crore as on 31st December 2014. The funds may come from qualified institutional buyers, venture capital funds or foreign institutional investors.

Gati is embroiled in a court case in Andhra Pradesh High Court related its FCCB bonds. The investors want to covert these bonds into equity shares, which Gati is refusing to do. The company has outstanding FCCB bonds of $22 million that are yet to mature.

The company also reported a thirdquarter net profit of Rs 14 crore, up 60% from Rs 8.74 crore.