Gati surged 7.1% to Rs 25.65 at 9:49 IST on BSE after the company said that the Arbitral Tribunal passed its verdict in the long pending arbitration proceedings between Air India and the company.
The announcement was made after market hours on Monday, 23 September 2013.
Meanwhile, the S&P BSE Sensex was up 38.86 points or 0.2% at 19,939.82.
On BSE, 64,000 shares were traded in the counter as against average daily volume of 52,461 shares in the past one quarter.
The stock hit a high of Rs 25.95 and a low of Rs 25 so far during the day. The stock had hit a 52-week high of Rs 45.90 on 9 October 2012. The stock had hit a 52-week low of Rs 22.65 on 2 August 2013.
The stock had underperformed the market over the past one month till 23 September 2013, rising 0.63% compared with the Sensex's 7.46% surge. The scrip had also underperformed the market in past one quarter, declining 7.71% as against Sensex's 6% gain.
The small-cap company has equity capital of Rs 17.32 crore. Face value per share is Rs 2.
The Arbitral Tribunal has passed its verdict dated 17 September 2013 directing Air India to pay a net sum of Rs 26.82 crore towards claims, damages interest and costs to Gati. Also, the Arbitral Tribunal has said that in the event of Air India failing to comply with the award within 30 days, Air India shall be liable to pay future interest at 18% per annum thereafter, Gati said in a statement.
In May 2007, Gati partnered with Air India for dedicated freighter service. Due to certain dispute the service had to be discontinued from March 2009. The matter was referred to Arbitration for adjudication of disputes between Air India and Gati.
Gati's consolidated net profit declined 83% to Rs 6.70 crore on 11.4% growth in net sales to Rs 320.56 crore in Q4 June 2013 over Q4 June 2012.
Gati is one of the leading logistics companies in India. Gati has a strong market presence in the Asia Pacific region and SAARC countries. It has offices in China, Singapore, Dubai, Thailand, Nepal, Bhutan, Mauritius and Malaysia.
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