Date:20/12/2005 URL: http://www.thehindubusinessline.com/2005/12/20/stories/2005122002441500.htm

Back Aegis Logistics rises on hopes of land deal with Adani group

Jayanta Mallick

Kolkata , Dec. 19

AEGIS Logistics moved up by around 5 per cent on the BSE today to close at Rs 310.65 on the hope that the company is poised to clinch a deal for 12-acre land at the Mumbai port with the Adani group.

The traded quantity in the counter also showed improvement over the average. On the BSE, 2.58 lakh shares changed hands on Monday against its fortnightly average of 1.12 lakh shares on the exchange. The stock has gained by around 13.50 per cent in the last one month.

The Adani group had obtained the asset from the Mumbai Port Trust to set up a cargo handling terminal. However, they had put the asset on the block some time ago. It is understood that Aegis Logistics recently sought no-objection certificates from the Union and State Governments, for acquiring the asset.

Aegis already has a terminal facility at Mumbai port on around 18 acres. It also has such a terminal and storage facility at Jawahar Lal Nehru Port Trust area.

The management of the company had earlier told Business Line that Aegis was looking for opportunities to expand its port-based logistics business.

According to market analysts, if the acquisition is cleared, it would prove to be a major booster for the company's growth. According to industry sources, the deal is estimated to be worth between Rs 80 crore and Rs 100 crore. The acquirer is expected to make fresh investments to make the facility operationally efficient and to lay appropriate infrastructure.