Allcargo Logistics Ltd and Allcargo Gati Ltd have announced a composite scheme of arrangement for restructuring of businesses. As per the exchange filing, International Supply Chain (ISC) business will be demerged into a separate entity called Allcargo ECU Ltd.
The company’s express business and contract logistics would come under the resulting entity Allcargo Logistics (post ISC demerger).
The stock rose by 4.71 per cent and traded at ₹144.50 as of 9:40 am on Friday.
Shareholding
As per the approved swap ratio, based on the recommendations of the independent valuers, shareholders of Allcargo Gati will get 63 shares in the resulting Allcargo Logistics entity (post ISC demerger) for every 10 shares held in Allcargo Gati.
Shareholders of Allcargo will get 1:1 shares in the demerged Allcargo ECU Limited and continue to hold their shares in Allcargo Logistics Limited, which will now be the resulting entity holding Express and Contract Logistics business directly. This takes into account 3:1 bonus shares approved by shareholders for Allcargo Logistics recently.
Allcargo Group founder and chairman, Shashi Kiran Shetty, said, “Our intention is to empower our flagship businesses with strategic independence and operational synergies, with customer integration in express and contract logistics businesses and direct shareholding in operating companies.”
As per the statement, the scheme is expected to be implemented in the period of 10-12 months, accounting for regulatory filings, and approvals from shareholders, stock exchanges, and the NCLT. Allcargo Group will eventually have four listed business undertakings.