Gati rose 1.13% to Rs 67.10 after the company's board on Tuesday allotted 1.33 crore shares at Rs 75 a share to Allcargo Logistics through a preferential allotment.
The preferential allotment, approved by the shareholders of Gati on 7 January 2020, takes Allcargo's stake in Gati to 13%. Allcargo paid Rs 100 crore for the shares.On 5 December 2019, Allcargo Logistics said it was acquiring a controlling stake in Gati for Rs 416 crore, through a three-stage process. Last week, Allcargo bought 27 lakh shares in Gati through open-market purchases.
Post these transactions, Allcargo owns close to 13% of Gati, which makes it the single largest shareholder in the logistics firm. The final stage involved Allcargo making an open offer to buy 3,17,42,615 equity shares representing 26% of the paid-up voting equity share capital from the retail shareholders of Gati at Rs 75 per share.
If the open offer is fully subscribed, Allcargo will end up with a 44.6% stake in Gati.
Shares of Allcargo Logistics were up 1.42% at Rs 103.65.
Allcargo Logistics is engaged in providing integrated logistics solutions. It offers logistics services across multi-modal transport operations, inland container depot, container freight station operations, contract logistics operations, and project and engineering solutions.
Gati jumped 20.35% in a month. On the technical front, the stock's RSI (relative strength index) stood at 63.563. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
On a consolidated basis, Gati reported a net loss of Rs 10.55 crore in Q2 September 2019 compared with net profit of Rs 2.61 crore in Q2 September 2018. Net sales declined 5.9% to Rs 439.70 crore in Q2 September 2019 over Q2 September 2018.
Gati is engaged in the express distribution and supply chain solutions. The company's segments include express distribution and supply chain, which covers integrated cargo services, such as road, rail and air transportation; shipping, which covers sea transportation and fuel stations.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
