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Last Updated : Dec 06, 2019 04:03 PM IST | Source: Moneycontrol.com

Gati share price dips 5% on Allcargo majority stake buy

Allcargo Logistics will acquire 1.04 crore shares of Gati at Rs 75 per share and has made an open offer for 26 percent stake at Rs 75 per share.

 
 
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Shares of Gati plunged five percent and Allcargo Logistics added four percent in the early trade on December 6 after the later acquired majority stake in the courier company.

Allcargo Logistics will acquire 1.04 crore shares of Gati at Rs 75 per share and has made an open offer for 26 percent stake at Rs 75 per share.

The Allcargo board has approved the share purchase agreement between the company and promoter for acquisition up to 1,03,85,332 equity shares at a price of Rs 75 per equity share and to acquire the preferential issue of 1,33,33,340 equity shares of Gati at Rs 75 per share.

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The company has also made an open offer to acquire up to 3,17,42,615 equity shares of Gati, representing 26 percent stake, at Rs 75 per share, aggregating to Rs 238 crore.

Motilal Oswal has maintained buy call on Allcargo Logistic with a target of Rs 130 per share.

The MTO business is likely to perform well over the medium term, led by healthy volume growth, said Motilal Oswal.

It expect EPS CAGR of 15 percent over FY19-21 and value the stock at 10x FY21E EPS to arrive at a target price.

At 09:28 hours, Gati was quoting at Rs 64.40, down Rs 1.60, or 2.42 percent and Allcargo Logistics was quoting at Rs 95.95, up Rs 1.80, or 1.91 percent on the BSE.

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First Published on Dec 6, 2019 09:51 am
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