Shares of logistics firm Allcargo Logistics climbed over 5% on Friday after the company declared would acquire majority stake in Gati, a Hyderabad-based courier delivery services company.
Allcargo Logistics stock price opened with 3.03% higher today and later rose 5.05% to intraday high of Rs 98.9 on BSE. The stock closed 3.03% higher at Rs 97 on BSE. Shares of Allcargo Logistics have gained 3.26% value in the last 2 days.
Following reports of acquisition, share price of Gati opened 2.73% higher to day's high of Rs 67.8, but later gave up gains and fell 4.85% to touch an intraday low of Rs 62. Gati stock price has fallen after 3 days of consecutive gain.
Allcargo said it would buy up to 1.03 crore equity shares, representing 8.51% stake at Rs 75 per share from some of the existing members of the Promoter and Promoter Group of Gati - Mahendra Kumar Agarwal, Mahendra Investment Advisors and TCI Finance (TCI), and Gati.
Allcargo will also subscribe to a preferential issue of 1.33 crore equity shares, representing 10.92% stake of Gati at Rs 75 per share, subject to the approval of the shareholders of Gati.
Consequent allotment as per the two agreements, Allcargo will own a 19.43% of expanded voting share capital in Gati. "Upon completion of the Proposed Preferential Allotment, the company will be classified as a promoter of the Gati along with its existing promoters," the filing added.
Further, Allcargo will make an open offer to buy 3.17 crore equity shares representing 26% of the paid-up voting equity share capital (post preferential issue and vesting of the stock option from the retail shareholders of Gati at Rs 75 per share.
If the open offer is fully subscribed, Allcargo will end up with approximately 45% stake in Gati.
Additionally, company board has also approved the issuance of 1,950 senior, rated, secured, listed, redeemable, non-convertible debentures (NCDs) aggregating up to Rs 195 crore on a private placement basis.