Gateway Distriparks surges 15% as Board approves business restructuring

The company said its board approved to explore various structures for streamlining the businesses currently being carried out by different group entities

Shares of Gateway Distriparks (GDL) moved higher by 15 per cent to Rs 108.20 on the BSE on Thursday after the company announced its board has approved to explore various structures for streamlining the businesses currently being carried out by different group entities.

GDL is one of the leading integrated inter-modal logistics facilitators in India. Gateway Rail Freight, a subsidiary of GDL, provides inter-modal logistics and operates rail-linked Inland Container Depots.

GDL in an exchange filing said, the board of directors of the Company at its meeting held on September 3, 2020 have approved to explore various structures for streamlining the businesses currently being carried out by different group entities of the Company.

"The group companies including Gateway Rail Freight, Gateway East India Private Limited and evaluation of options for undertaking internal group restructuring ('Proposed Restructuring') as may be permitted under applicable laws, including but not limited to mergers, reverse merger, demerger or any other form of business restructuring which is beneficial to the Company and all stakeholders involved," it said.

Going forward, the Gateway Distriparks Group plans to utilise its land banks to further extend capacities and use its network, ready infrastructure and alignment with the Western Dedicated Freight Corridor to capture the growth once there is an improvement in the macro economic factors, GDL said in FY2019-20 annual report.

Last month, GDL had raised Rs 116 crore though rights issue at price of Rs 72 per share. The rights entitlement ratio was four rights equity shares for every 27 fully paid-up equity shares held by the shareholders.

At 12:26 pm, the stock was trading 8 per cent higher at Rs 101.80 on the BSE, as compared to 0.27 per cent decline in the S&P BSE Sensex. The trading volumes on the counter jumped three-fold with a combined 1.5 million equity shares changing hands on the NSE and BSE till the time of writing of this report.