Blackstone will make an investment in the company's subsidiaries through a combination of equity and debentures upto Rs 380 crore.
The transaction is expected to conclude in a phase wise manner over the next 12 months.
As many as 87.53 per cent of shareholders voted in favour of the deal during an extraordinary general meeting held on Wednesday, Gati said in a BSE filing.
Sakshi Batra does a 3-Point Analysis to find out if the company should be on investors’ radar.
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.
Under a three-phased deal, Allcargo will first buy over 1.03 crore shares and subscribe to a preferential issue of over 1.33 crore shares (collectively 18 percent shares) held by promoters and promoter group of Gati, including Mahendra Kumar Agarwal, Mahendra Investment Advisors and TCI Finance and also Gati, at Rs 75 a share.
The move will see Allcargo acquiring a controlling stake, post which it is likely to make an open offer to Gati's shareholders
Its total revenues for the April-June quarter stood at Rs 1,815 crore as against Rs 1,626 crore in Q1 FY19, registering a growth of 12 percent.
Motilal Oswal is bullish on Allcargo Logistics has recommended buy rating on the stock with a target price of Rs 142 in its research report dated February 12, 2019.
Kotak Securities is bullish on Allcargo Logistics has recommended buy rating on the stock with a target price of Rs 145 in its research report dated December 07, 2018.
We expect VRL Logistics to be a steady compounder over the next few years and therefore advise long term investors to accumulate the stock on dips
Prabhudas Lilladher recommended accumulate rating on Allcargo Logistics with a target price of Rs 159 in its research report dated May 24, 2018.
Motilal Oswal is bullish on Allcargo Logistics has recommended buy rating on the stock with a target price of Rs 163 in its research report dated May 23, 2018.
Net Sales are expected to increase by 9.6 percent Y-o-Y (up 1 percent Q-o-Q) to Rs. 1,494.1 crore, according to Prabhudas Lilladher.
Kotak Securities is bullish on Allcargo Logistics has recommended buy rating on the stock with a target price of Rs 250 in its research report dated January 04, 2018.
While some of our recommended companies have surpassed our expectations, for a few others, the quarter turned out to be a dull one.
Failure to cross 10,500 on a closing basis can trigger profit booking dragging the index lower to levels of 10,250-10,115. However, a close above 10,500 on good volumes can extend the up move to levels of 10,645-10,710.