Patel Integrated Logistics Ltd’s recent rights issue, which closed on October 1, 2024, was a major success, being oversubscribed by 3.19 times. The company received bids for 1,59,67,190 shares against the 50,00,000 shares that were available.
The rights issue, which opened on September 19, 2024, was priced at ₹18 per share, including a premium of ₹8 over the ₹10 face value. Mahesh Fogla, the executive director of Patel Integrated Logistics, expressed gratitude, stating, “The oversubscription shows the trust and confidence our shareholders and the public have in us.” He added that this funding would help the company nearly eliminate its term loan debt, reducing annual interest expenses by about ₹1 crore, which will directly boost profitability.
The funds from the rights issue will be used to repay term loans, thereby strengthening the company’s financial health and supporting future growth plans. Patel Integrated Logistics specializes in air freight services both domestically and internationally, and it also handles cargo transport via passenger flights, including same-day delivery.
Founded in 1962 by Asgar Shakoor Patel as Patel Roadways Pvt Ltd, the company started with surface transport logistics and has since expanded into air freight and warehousing. Patel Integrated Logistics aims for double-digit growth in FY25 to enhance long-term shareholder value. The air freight market in India is projected to grow from $13.08 billion in 2023 to $17.22 billion by 2028, with a CAGR of 5.65%.
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