Despite the threat of FDI cap being lowered to 49% in the courier industry, the Indian courier and logistics sector is seeing a flurry of deals involving foreign players. French major GeoPost Intercontinental is buying a 60% stake in Delhi-based Continental Air Express while venture capital fund Clearstone Venture is set to buy a 35% stake in Mumbai-based courier company Elbee Express.

Clearstone Venture through its Mauritius arm Clearstone Venture Mauritius is buying a 35% stake in Elbee Express by way of equity and preference shares for Rs 16 crore. Nikhil Shah and Chandrika Shah are the promoters of Elbee, which also has over 2% stake owned by Kotak Mahindra.

Paris-based GeoPost Intercontinental is buying a 60% stake in Continental Air Express for Euro 4,00,000 through preferential allotment of equity. GeoPost, a Paris-based firm with a turnover of close to Euro 3000 million in 2006, is engaged in B-2-B express parcel deliveries. The promoters of Continental Air Express - Vipin and Vaibhav Vohra- and GeoPost will invest an additional Euro 4 million in the ratio of their shareholding 40%:60%, respectively.

In yet another deal which may materialise soon, two private equity players, JP Morgan and IDFC, are negotiating with the promoter - Capt P V K Mohan - for a minority stake in a Hyderabad-based logistics firm Seaways. The deal, likely to be finalised in a couple of weeks, may be valued at Rs 250 crore.

Mr. Neeraj Sharma

Neeraj Electronics

CEO, Neeraj Electronics
Jorhat, India

Free Member, Joined :06/09/2007
No of Topics Posted : 112
Reply/Comments : 9