Share of Allcargo Logistics were locked in a 20 per cent upper circuit at Rs 130.8 after the promoters of the company led by Shashi Kiran Shetty and Talentos Entertainment Private Limited (TEPL) informed exchanges on Monday about their intention to delist equity shares from the exchanges. “The promoters intended to acquire all the fully paid-up equity shares of the company, each equity share having a face value of Rs 2 per equity share held by the public shareholders of the company,” Allcargo Logistics said in an exchange filing.
Promoters of Allcargo Logistics currently hold 17,20,22,209 equity shares aggregating to 70.01 per cent of the paid-up equity share capital of the company, data from BSE showed.
The board of directors of Allcargo Logistics will meet on August 27 to consider the proposal for delisting of shares, the company added.
Allcargo Logistics said that the proposed delisting of shares will align the group’s capital and operational structures, streamline the process of servicing the group’s financing obligations and significantly improve a range of important credit metrics. As a result, the transaction is expected to support an accelerated debt reduction programme in the medium term and in turn support the group’s highly attractive longer term growth pipeline.
The delisting of shares will also enable promoters to obtain the full ownership of the company which will provide enhanced operational flexibility, Allcargo Logistics added.
As of 12:52 pm, Allcargo Logistics shares were locked in 20 per cent upper circuit at Rs 380 with 39,526 pending buy orders on the BSE.