Indian Extraction Limited (IEL), an emerging player in India’s warehousing and logistics sector, has raised Rs. 43.17 crore through a rights issue. The company issued 97,016,156 fully paid-up equity shares of the face value of Re.1/- at Rs. 4.45 per share, including a premium of Rs. 3.45 per share.
The rights issue opened on February 4, 2025, and closed on February 27, 2025, whereas allotment was made on March 5, 2025. The funds raised will support IEL’s plans to expand in the warehousing and logistics sector.IEL intends to use the raised capital to acquire land, build storage facilities, and develop logistics infrastructure.
The company has signed an MoU for land acquisition and has selected partners for warehousing construction. The first phase of the development will be in the Neeva village of Lucknow, part of the warehousing belt of Bijnor.
This phase will include building warehouses, cold storage, silos, and smart warehouses. IEL plans to develop the project in four phases, with 76% of the area dedicated to warehouses and 24% to cold storage facilities.
Ajay Gupta, Managing Director of IEL Limited, stated, “We are looking forward to our warehousing project in Lucknow. The demand for Grade A warehouses is rising due to the growth of e-commerce, and we are in a strong position to meet this need. The site is well-connected through roads, making it a key logistics location. The funds from this rights issue will help us speed up our entry into the warehousing and logistics sector. This will help us meet the increasing demand for storage solutions, particularly in Tier 2 and Tier 3 cities, where modern logistics infrastructure is needed.”
The company aims to work with companies like Amazon, Ecom Express, Flipkart, and others to meet the demand for warehousing space in Lucknow and nearby areas. The project, located in a key warehousing cluster, is well-positioned to serve half of India’s population. The area is easily accessible via national highways, expressways, and roadways, making it a strategic location for logistics operations.
The warehouses will feature quality building and structural designs, modern loading and unloading facilities, and essential utilities to support operations. Sustainability and energy efficiency are important to the company, with energy-efficient lighting in common areas and other sustainable features being integrated into the design. These features will ensure that the facilities are efficient and environmentally friendly.
With the government’s focus on improving infrastructure and logistics connectivity, IEL is well-positioned to benefit from these developments, which are expected to boost India’s GDP. Expanding warehousing and logistics infrastructure will support economic growth and provide long-term value for IEL and its shareholders.
Source : Press Release
