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Mercantile Ports & Logistics Ltd on Thursday said it will raise around £9 million to go towards paying back part of a loan taken by its Indian subsidiary. The developer, owner and operator of ports and logistics facilities in India said it plans to raise £3.0 million through an accelerated bookbuild at a price of 3 pence per share. It also plans a subscription with ‘certain existing and new investors’, including Hunch Ventures and Investment Pvt Ltd, to raise a further £5.9 million. In addition, it plans a retail offer to secure £1.2 million. Shares in the company fell 4.5% to 4.06 pence each in London on Thursday. The proceeds will go towards paying back part of a loan facility entered into between Karanja Terminal & Logistics Pvt Ltd, the company’s Indian subsidiary, and four Indian public sector banks. ‘Over recent months, we have been focused on executing on the exciting growth opportunities presented by our Karanja port facility. As announced in February and March this year, we have secured several new contracts in Q1 2023 that underpin our confidence in accelerating utilisation levels at the Karanja port facility. Karanja port is a uniquely located, long-term strategic asset located in a fast-growing economy, and this fundraise means that the group will benefit strongly from positioning the group’s debt profile to match the long-term, back-ended cash flow generation curve that is typical of infrastructure projects such as the Karanja port,’ Chair Jeremy Warner-Allen said. The company results for 2022 will be in line with market guidance. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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