IEL Limited Initiates Major Rights Issue to Fund Warehousing Expansion

IEL Limited launches a significant rights issue from February 4-21, 2025, offering 10.01 crore shares at Rs4.45 each. Proceeds will fund a strategic push into warehousing, including land acquisition in Lucknow. This move aligns with their vision to expand in India's burgeoning logistics sector.

IEL Limited, a key player in the chemical and commodity markets, is set to launch a major rights issue from February 4 to February 21, 2025. The rights issue will offer 10,01,28,990 equity shares priced at Rs4.45 each, accumulating a total of Rs44.56 crores. Shareholders recorded on January 17, 2025, will be eligible for three rights shares for every fully-paid equity share held, in a 3:1 entitlement ratio.

Founded in 1956, IEL Limited, based in Ahmedabad, Gujarat, has significantly diversified its portfolio over the years. The company has ventured into the warehousing and logistics sectors, aiming to boost its market presence amid fierce competition. It reported a profit of Rs0.13 crores on Rs0.22 crores income for the year ending September 2024, demonstrating its commitment to growth.

The capital raised through this rights issue is earmarked for acquiring land and constructing new warehousing facilities, financing these endeavors, and covering corporate and issue-related expenses. This initiative marks a strategic shift as IEL Limited ventures into India's burgeoning warehousing and logistics sector, collaborating with the expected growth to $215 billion by 2026.

(With inputs from agencies.)