Blackstone rejects Gateway offer for India freight business

According to a GDL filing, Blackstone plans to convert its compulsorily convertible preference shares into equity. At the start of the year, the private equity firm petitioned GDL to pursue an IPO for the subsidiary, noting this was part of the original investment agreement.

GDL's offer - which it claimed was made in accordance with the terms of an agreement between the two parties - would double the INR3 billion that Blackstone paid for its stake in 2010.

GRFL handles the rail operations of GDL through a network of rail-linked container depots, which connect its fleet of 21 trains and more than 235 shipping trailers. It handles both imported and exported goods, as well as domestic shipping.

Blackstone already has two Indian portfolio companies at different points in the IPO process. Seeds producer Nuziveedu Seeds filed in March and received final regulatory clearance in August, while Emcure Pharmaceuticals submitted its documentation in June. Volatile public markets have caused several offerings to be delayed.

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• Topics
• Exits
• South Asia
• Industrials
• The Blackstone Group
• Exit
• India
• Logistics