Hedge fund and private equity firm Blackstone Group has decided to pump Rs 300 crore in Gateway Rail Freight Ltd (GRFL), the rail logistics arm of logistics firm Gateway Distriparks, for funding its expansion plans.

The tie-up will mark the 9th investment of Blackstone Group in the country in a time period of four years and the second one in the logistics sector.

Under the arrangement, GRFL would issue compulsorily convertible preference shares to Blackstone. Upon conversion of the shares, the private equity investor would be entitled to gain between 37 per cent to 50 per cent in GRFL.

Prem Kishan Gupta, Chairman and Managing Director of GRFL said, “We plan to invest the money to develop new terminals, deploy additional trains and road trailers, expand capacity at existing terminals and strengthen last mile connectivity. The investment comes as growth capital for the company."