Patel Integrated Logistics plans Rs 9 crore rights issue

Patel Integrated Logistics, a logistics and supply chain service provider, is planning to raise Rs 9 crore via a rights issue.

The board of directors, in its meeting held on August 28, 2024, finalised the issue at Rs 18 per equity share (including a premium of Rs 8), according to an official release. The shareholders will receive eight shares for every 103 shares held.

Post rights issue (if successful), the equity shares of the company will get enhanced by 7.74 percent to 6.95 crore shares from the existing 6.46 crore shares, the release added.

Mahesh Fogla, Executive Director, Patel Integrated Logistics says: “The rights issue will help us to make the company debt free in terms of term loans and reduce our annual interest burden by around Rs one crore which will be net profit positive. We have made the rights issue attractive to our shareholders by offering it at a discount to the prevailing market price so that they can continue taking part in the company’s growth journey. We are anticipating double digit growth in FY25.”

The issue will open on September 19, 2024 and close on October 1, 2024. The funds raised will be used to repay term loans, the release added.

The shares closed marginally lower today at Rs 26.08 on the BSE and Rs 26 on the NSE today.