Reported By:
| Edited By: Neha Rishi |Source: DNA |Updated: Mar 30, 2018, 03:13 AM IST
Aqua Logistics, a full scope third-party logistics service provider, is looking at acquiring 4 to 5 companies in Indonesia, Thailand, Singapore, Vietnam and Russia.
The company is planning to raise $70 million either through qualified institutional placement, global depository receipts or foreign currency convertible bonds to fund the acquisitions, said M S Sayad, vice-chairman, Aqua Logistics.
An enabling resolution to raise the funds was obtained on June 28.
The promoters hold around 50% stake in Aqua Logistics and, according to sources, the company is looking at an equity dilution of about 15%.
The company, which is present in verticals such as pharma, retail, automobile, sports and events, plans to go aggressive in the power and oil & gas verticals.
“The acquisition in Indonesia will focus on the power vertical for the procurement of coal, Thailand will be for liquid gas, and acquisitions in Singapore, Russia and Vietnam will address the company’s oil & gas vertical,” Sayad said.
He said that initial discussions are on and the acquisitions would be completed in the next 4 months.
Aqua, which acquired 3 Hong Kong-based companies — CIT, TAG and AGI Logistics — through its wholly owned subsidiary, Aqua Logistics Hong Kong Ltd, said the acquisitions are likely to contribute around Rs 150 crore to topline and around Rs 8-10 crore to net profit.
Aqua, which is being aggressive with acquisitions, had raised Rs 150 crore in its initial public offering. The IPO funds were used to acquire the Hong Kong-based companies to cater to the power and retail markets. The company also plans to use the IPO money to set up offices in the Middle East.
An analyst with a domestic research firm said these acquisitions will allow Aqua to increase its geographical presence and compete with multinationals.
“Further, companies in the developed markets are under pressure to lower their operational costs due to general business downturn, low margins and high employee costs. This gives Aqua an opportunity to move certain processes to India, which has lower operational costs,” the analyst said.
