Allcargo Logistics locks in at upper circuit on delisting proposal
Logistic services provider, Allcargo Logistics has informed the bourses about the promoter’s plan to delist the equity shares of the company.
The meeting is going to be held on August 27, 2020, in which, this delisting proposal will be presented to the board of the company.
As of the date, the members of the promoter group collectively hold 17,20,22,209 equity shares aggregating to 70.01 per cent of the paid-up equity share capital of the company. The public shareholders hold 7,36,73,315 equity shares aggregating to 29.99 per cent of the paid-up equity share capital of the company.
Now, let’s take a look at the rationale of this proposed delisting. This move will 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 and new business activities into new geographies. This move will 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 and 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 locked in upper circuit at Rs 130.80, up by 20 per cent on BSE.