Aegis Logistics seeks shareholder nod to raise up to Rs 6,000 crore for expansion and funding flexibility

Aegis Logistics Ltd has approved a proposal to raise up to Rs 6,000 crore through one or more domestic or international offerings, subject to shareholder approval through a special resolution. The move gives the gas and liquid logistics group broad flexibility to fund expansion, refinance obligations or pursue other capital requirements as it builds out its coastal terminal network.

The board approved the proposal at its meeting on September 28, 2026. The company may raise funds in rupees or foreign currencies through a mix of equity shares, bonds, foreign currency convertible bonds, depository receipts, debentures, non-convertible debt instruments, warrants and other equity-linked securities.

The proposed issue can be undertaken through public offerings, preferential issues, private placements, qualified institutional placements or a combination of these routes, subject to regulatory and statutory approvals. However, the company has not yet disclosed the final instrument mix, issue size for individual tranches, pricing, investors or timing.

Separately, Aegis Logistics’ board approved a proposal to increase its overall borrowing limits to an aggregate amount not exceeding Rs 6,000 crore. It also authorised the creation of charges or mortgages over company assets and properties within the proposed borrowing limits. These proposals will also require shareholder approval.

The resolutions do not mean that the entire amount will necessarily be raised or borrowed immediately. Instead, they establish a funding framework under which the board or its Fund Raising Committee can determine the detailed terms of any transaction.

The capital-raising flexibility fits with Aegis Logistics’ ongoing infrastructure-led growth strategy under Project GATI, or Gateway Access to India. The company has been expanding liquid and LPG storage, port-linked logistics facilities, rail-loading infrastructure and LPG distribution capabilities across key coastal locations.

Management has previously outlined a broad project pipeline involving expansion at Mumbai Port, JNPA, Kochi and Mangalore, alongside the development of an ammonia terminal at Pipavav. Such projects require substantial upfront investment in specialised storage tanks, jetties, pipelines, safety systems and evacuation infrastructure.

The company’s June 2026 quarter reflected stronger operating momentum. Net sales rose 37.07 per cent year-on-year to Rs 2,356.86 crore, while profit after Tax increased 210.70 per cent to Rs 544.84 crore. PBIDT excluding other income climbed 197.42 per cent year-on-year to Rs 713.57 crore, with the related margin improving to 30.28 per cent from 13.95 per cent a year earlier.

The fundraising plan therefore comes after a period of improved profitability, particularly in the gas business, where LPG distribution volumes and margins have been key drivers. Management has maintained that additional storage capacity, sourcing capabilities and wider distribution reach could support further volume growth. Nevertheless, execution of new terminals, the pace at which fresh capacity is utilised and the sustainability of elevated gas distribution margins remain important factors for investors.

Aegis Logistics has said the notice for the extraordinary general meeting will be submitted to the stock exchanges after it is circulated electronically to shareholders. The Fund Raising Committee has been authorised to take steps necessary to implement the proposal.

As of 12:54 PM on September 28, 2026, Aegis Logistics shares were trading at Rs 1,333.00, down 2.49 per cent from the previous close of Rs 1,367.10. The stock was about 10.3 per cent below its 52-week high of Rs 1,486.75, although it had gained 71.04 per cent over the preceding year, compared with a 4.14 per cent decline in the BSE 500.

Disclaimer: The article is for informational purposes only and not investment advice.