Allcargo Logistics board approves delisting proposal; floor price set at Rs 92.58

Logistic services provider, Allcargo Logistics, informed the bourses during the weekend that its board has approved the delisting proposal of the company. The floor price is set at Rs 92.58, which is at 22 per cent discount from its previous close of Rs 119.

Earlier on August 24, 2020, its promoters had proposed a delisting plan. At that time, the members of the promoter group collectively held 17,20,22,209 equity shares, aggregating to 70.01 per cent of the paid-up equity share capital of the company and the public shareholders held 7,36,73,315 equity shares, aggregating to 29.99 per cent of the paid-up equity share capital of the company.

This delisting would align the company’s operations as well as capital structure. It will also help in streamlining its financial obligations and will significantly improve credit metrics. As a result, this move is likely to support an accelerated debt reduction programme in the medium-term. This will in turn support the company’s long-term growth pipeline. The company’s long-term plans include enhancing the operations of the new business activities into new geographies. This move would also help in the reduction of compliance costs.

The company operates mainly into four segments i.e. (i)Multimodal transport operations; (ii)Container freight stations/inland container depots (iii)Project & engineering solutions and (iv)Logistics park. The company is carrying out contract logistics business through its joint venture i.e. Avvashya CCI Logistics Private Limited.

Today, the stock of Allcargo Logistics opened at Rs 118.60 and declined by four per cent to Rs 113.90 on BSE.