Allcargo Chairman Shashi Kiran Shetty also expects a brighter future for the Hyderabad-based subsidiary as it is awaiting a tax write-back of Rs 50-60 crore through the ongoing dispute settlement scheme and thus close the fiscal year with a healthy bottomline.
It can be noted that late last November the Shashi Kiran Shetty-led company had announced plans to buy 44.5 percent in Gati for Rs 416 crore in a three-way deal.
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.
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
CARE retained its rating on company's long term bank facilities of Rs 173 crore at BBB, but revised outlook from stable to negative.
Net Sales are expected to decrease by 12.3 percent Y-o-Y (down 13 percent Q-o-Q) to Rs. 399.9 crore, according to ICICI Direct.
ICICI Direct recommended hold rating on Gati with a target price of Rs 95 in its research report dated May 30, 2019.
ICICI Direct recommended hold rating on Gati with a target price of Rs 75 in its research report dated January 28, 2019.
ICICI Direct recommended hold rating on Gati with a target price of Rs 90 in its research report dated November 20, 2018.