IEL Limited, a prominent player in the chemical, dye, pigment, and commodity trading industries, has announced a rights issue of up to 10,01,28,990/- fully paid-up equity shares to raise amount not exceeding of Rs. 44.56 crores. The rights issue, set to open on February 4, 2025, and to be closed on February 21, 2025, is part of the company's strategic initiative to diversify into the rapidly growing warehousing and logistics sector.
The company will issue 10,01,28,990/- fully paid-up equity shares with a face value of Rs 1/-each for cash at a price of Rs 4.45 per equity share (including a premium of Rs 3.45 per equity share), totalling to Rs. 44.56 crores. This rights issue has been strategically priced to attract shareholders and support the company's expansion into the warehousing and logistics sector, aligning with its long-term growth objectives. The funds raised through the issue will be deployed for acquiring land, constructing modern storage facilities, and meeting general corporate expenses. A portion will also be allocated to cover the costs associated with the rights issue.
As part of its expansion strategy, IEL has already acquired 29,800 square meters of land in Lucknow and plans to establish state-of-the-art storage facilities, including warehouses, cold storage units, Silos and smart warehouses equipped with advanced technology. These developments will cater to the growing demand for efficient and reliable storage solutions across sectors such as retail, food, and pharmaceuticals.
Ajay Gupta, Managing Director from IEL Limited stated, “With the Indian warehousing market expected to grow to USD 34.99 billion by 2027, IEL’s expansion into this space is set to tap into a critical and rapidly growing sector. This rights issue is a crucial step in supporting our ambitious expansion into the warehousing and logistics sector. With the funds raised, we plan to acquire land for new storage facilities and develop infrastructure to meet the growing demand across India. Our focus will be on high-demand regions, along with the creation of specialized cold storage units and the implementation of smart warehouse solutions. This move will not only strengthen our position in the logistics space but also enhance the value we provide to our shareholders. We are confident that our expansion into this rapidly growing sector will help us tap into a market poised for significant growth.”
Annually, IEL Ltd saw its net sales rise by 56.16 percent, reaching Rs17.26 crore in FY24, up from Rs11.05 crore in FY23. However, the annual net profit decreased to Rs0.26 crore in FY24 from Rs2.37 crore in FY23. During the previous financial year 2023-2024, the company's shares underwent a stock split, reducing the face value of equity shares from Rs10 to Rs1, effective September 25, 2023.
