Skil Ports needs further funds for Mumbai facility

India’s Skil Ports & Logistics swung to a small profit in the first half of the year but the company confirmed it needs an additional £36m to complete construction at its Mumbai facility.

Skil, which is not yet generating revenue as it develops a port and logistics facility in Mumbai, posted a small profit for the six months ended 30 June from financing activities and was left with £24.8m worth of rupees of cash on hand and a £24.8m headroom in its existing credit facility.

Executive chairman Nikhil Gandhi said, after discussions with its contractor, the board has calculated that it will need a further £36m cash to fund the completion of the project and capitalise the company until it is financially self-sufficient.

Gandhi said various funding opportunities were being explored, and has instructed advisers to look into a placing and open offer, alongside options such as increasing banking facilities and securing a strategic partner.

During the six months the company reclaimed 30 hectares of land with dredging restarting after the monsoon period, which is expected to end soon, with the port able to receiving vessels by the end of this year but revenues from operations not expected until later in 2017.

Gandhi said the company’s sales and marketing received positive feedback from potential end users and the company will seek to reach agreements with them in the coming months.

Shares in Skil Ports & Logistics were up 7.69% to 10.50p at 1358 BST.