Home / Knowledge / News / Textiles / Allcargo buys controlling stake in Gati

Allcargo buys controlling stake in Gati

Dec '19
Pic: Allcargo
Pic: Allcargo
Mumbai-based Allcargo Logistics Ltd recently ventured into the express logistics space by acquiring a controlling stake in Gati Ltd for ₹416 crores, the company said after the board approved the deal. As part of the deal, Allcargo will buy up to 1,03,85,332 equity shares at ₹75 per share from some of the existing members of the Gati Group promoters.

The members include Mahendra Kumar Agarwal, Mahendra Investment Advisors Pvt Ltd and TCI Finance Ltd (TCI) and Gati.

This includes 9,67,000 equity shares of Gati, which pursuant to the order of the High Court at Kolkata are to be restored to TCI and which would form a part of the share purchase agreement (SPA), if restored prior to the completion date of SPA.

Allcargo will also subscribe to a preferential issue of 1,33,33,340 equity shares of Gati at ₹75 per share, subject to the approval of the shareholders of Gati, according to Indian media reports.

If the open offer is fully subscribed, Allcargo will end up with a 44.6 pr cent stake in Gati.

Further, Allcargo will make an open offer to buy 3, 17,42,615 equity shares representing 26 per cent of the paid up voting equity share capital (post preferential issue and vesting of stock option) from the retail share-holders of Gati at ₹75 per share, in accordance with regulatory requirements.

Allcargo provides a range of services like multimodal transport operations (MTO), container freight station operations/inland container depot operations (CFS-ICD) and logistics parks.

With this acquisition, Allcargo is also entering into a strategic relationship with Japanese freight forwarder Kintetsu World Express (KWE), a key customer of ECU Worldwide (Allcargo’s wholly-owned global subsidiary) in its LCL business. This partnership will allow Allcargo and KWE to jointly explore and pursue further collaborations within and outside India.

Kintetsu owns 3.99 per cent stake in Gati.

The acquisition seeks to align Allcargo with the growing Indian transportation and logistics market which is expected to further consolidate owing to the digital push and continued reforms pursued by the government.

Fibre2Fashion News Desk (DS)

Must ReadView All

Pic: Shutterstock

Textiles | On 20th Jan 2020

US-China Phase I trade deal to boost US cotton exports

The National Cotton Council (NCC) has announced that the Phase 1...

Pic: Shutterstock

Textiles | On 20th Jan 2020

India, Uzbekistan explore preferential trade agreement

India and Uzbekistan recently agreed to conclude early a joint...

Pic: Shutterstock

Textiles | On 20th Jan 2020

China's GDP grew by 6.1% in 2019, slowest in 3 decades

China's economy weakened to its slowest pace in three decades last...

Interviews View All

Yash Agarwal, Hitansh Online

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Rashi Menda, Zapyle

Rashi Menda

Every fifth sale we make on Zapyle is a repeat purchase

Top executives, Textile industry, India

Top executives
Textile industry, India

Such fairs are a must for industry to showcase new innovations

Abhishek Pachauri,

Abhishek Pachauri

Reckon Industries is into manufacturing of textile process house machines, ...

C Dhandayuthapani,

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Priyanka Gandhi,

Priyanka Gandhi

Established in 2016, Surat-based Shree Ganesh Yarns is a manufacturer of...

Sameer Sonkusale & Rachel Owyeung, Tufts University

Sameer Sonkusale & Rachel Owyeung
Tufts University

A team at the Tufts University in Massachusetts was recently in news for...

Johann-Philipp Dilo, Dilo Group

Johann-Philipp Dilo
Dilo Group

German company Dilo Group is one of the leading equipment suppliers of...

Luis Quijano, Liberty University

Luis Quijano
Liberty University

Focusing on bold patterns and colour palettes, Luis Quijano, a student at...

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Chandani Sahi, By Chandani

Chandani Sahi
By Chandani

By Chandani is a womenswear prêt couture brand with fusion silhouettes by...

Mike Hoffman, Gildan Activewear SRL

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

January 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Advanced Search