Allcargo Logistics soars near 8% after board approves scheme of arrangement

Allcargo Logistics Share Price: Allcargo Logistics Limited shares are soaring higher on BSE on Friday (December 22, 2023) after the company board approved the composite scheme of arrangement for restructuring of businesses under Allcargo Limited and Allcargo Gati Limited (Formerly Gati Limited). 

The Allcargo Logistics stock was skyrocketing by 7.93 per cent, or Rs 22.60, at Rs 307.50 at 9:36 am on Friday.

"As per the scheme, International Supply Chain (ISC) business will be demerged into a separate entity: Allcargo ECU Limited. This would include the India part of International Supply Chain business along with the international subsidiaries held under the ECU Worldwide NV," said Allcargo Logistics in a statement on Thursday.

Express business and Contract Logistics business would come under the resulting entity Allcargo Logistics (post ISC demerger) which will benefit from combined synergies and the shareholders of Allcargo and Allcargo Gati will get direct shareholding eliminating inefficient complex corporate structure, the company said.

Shareholders of Allcargo will get 1:1 shares in the demerged Allcargo ECU Limited and continue to hold their shares in Allcargo Logistics Limited, which will now be the resulting entity holding Express and Contract Logistics business directly. "This takes into account 3:1 bonus shares approved by shareholders for Allcargo Logistics recently," said the company.