As part of this transaction, FSC has issued 37,89,350 shares to Nippon Express at Rs 664 a share, which is a full 22 percent premium to the current market price.
Through this primary issue, Nippon will hold 8.6 percent stake on a fully diluted basis and FSC will raise around Rs 252 crore for funding its near-term growth plans.
The two companies will jointly start the business collaboration from next January.
Nippon Express chief managing officer Satoshi Horikiri said, "this partnership will form an important part of our long-term vision of becoming a logistics company with a strong presence globally.
"We want to increase our sales outside Japan threefold to USD 12 billion by 2028 from USD 4 billion now," he added.
The domestic logistics industry is around USD 180 billion and is growing rapidly.
"We have a vision of becoming Rs 10,000-crore company over the next five to seven years by focusing on consumption- driven sectors offering customised solutions such as warehousing, transportation and distribution," Toshniwal said, adding current revenue is around Rs 1,500 crore.
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