Allcargo Gati launches QIP to raise up to Rs 200 crore; may sell shares at 10% discount to last close

Allcargo Gati stock price jumped in the last one hour of trade on Monday, June 24, ending up 5.61 at Rs 113.

Logistics firm Allcargo Gati has launched a QIP to raise funds from institutional investors, and has approved the floor price for the same, it said in a stock exchange filing late evening on 24 June. Allcargo Gati is looking to raise as much as Rs 200 crore from the qualified institutional placement of shares, reported CNBC-TV18 citing unidentified sources. The base size of the issue is Rs 100 crore, with an option to raise it by another Rs 100 crore, said the report.

Allcargo Gati has set the floor price for the QIP issue at Rs 106.67 per share. This is at a discount of 5.6 percent to the last session’s closing price. The stock price jumped in the last one hour of trade on Monday, June 24, ending up 5.61 at Rs 113. Notably, the issue floor price has discounted Monday’s stock price gain.

The company said it will determine the final issue price in consultation with the book running lead managers, and may offer a discount of up to 5 percent on the floor price. CNBC TV18 reported that the indicative price of the issue is set at Rs 101 per share, taking the discount over previous closing price to over 10 percent.

Nuvama Wealth Management has been appointed as the book running lead manager for the issue.

Earlier, in December 2023, Allcargo approved a business restructuring plan. According to the scheme of arrangement, the International Supply Chain business of Allcargo would be demerged into Allcargo ECU, where shareholders would get one share of Allcargo ECU for every one share held. Allcargo Logistics would hold the Express and Contract Logistics Business. Additionally, Allcargo Gati would merge with Allcargo Logistics, where shareholders of Allcargo Gati would get 63 shares of the post-demerged Allcargo Logistics for every 10 shares held.