Allcargo Logistics gets 'gati'

Yesterday evening, Allcargo Logistics announced that it is received SEBI’s nod to take over controlling stake in Gati through an open offer.

Allcargo will acquire approximately 3.17 crore shares or 26% stake in Gati at Rs. 75 a share.

On full acceptance of the open offer it will take Allcargo's stake in Gati to 46.83%.

This will mark the completion of the acquisition process which was initiated on December 5, 2019. The open offer is expected to be launched in March 2020 and closed by April 2020.

Allcargo has already deposited Rs. 238 crore - equivalent to 100% of the capital required to fund the open offer - into an escrow account set up as per SEBI norms for the open offer transaction.

 Preferential allotment and part purchase of promoter shares has also been completed by Allcargo in January 2020. As part of this process, two directors of Allcargo have been appointed on the Gati Board.

Operating an asset-light and hub and spoke model, Gati currently has a presence in 727 districts in India. It has simplified door-to-door express logistics by creating a formidable network serving over 19,000 PIN codes across the country.

The stock price of Allcargo has been rising for the last four days. Today, it opened with a gain of over 3.3% at Rs.114.05 and went on to hit an intraday high at Rs.114.10. Its 52-week high is at Rs.126.