Mercantile Ports & Logistics Ltd on Tuesday said it has raised £9.0 million from a placing, subscription and retail offer.

On Thursday, the developer, owner and operator of ports and logistics facilities in India announced plans to raise around £9 million through a fundraise of shares priced at 3 pence per share.

Shares in Mercantile Ports were up 8.6% to 3.80p each in London on Tuesday morning.

On Tuesday, the company said its retail offer had closed on Monday and that 4.5 million retail shares will be issued in connection with the retail offer.

In total 301.5 million new shares will be issued in connection with the fundraise, this includes the retail shares, as well as 101.9 million placing shares and 195.0 million subscription shares.

The proceeds will go towards paying back part of a loan facility entered into between Karanja Terminal & Logistics Pvt Ltd, the company’s Indian subsidiary, and four Indian public sector banks.

‘Over recent months, we have been focused on executing on the exciting growth opportunities presented by our Karanja port facility,’ Chair Jeremy Warner-Allen said on Thursday.

‘As announced in February and March this year, we have secured several new contracts in Q1 2023 that underpin our confidence in accelerating utilisation levels at the Karanja port facility. Karanja port is a uniquely located, long-term strategic asset located in a fast-growing economy, and this fundraise means that the group will benefit strongly from positioning the group’s debt profile to match the long-term, back-ended cash flow generation curve that is typical of infrastructure projects such as the Karanja port.’

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