ICICI Securities: Allcargo Logistics - Trying To Stitch Through An Integrated Offering
ICICI Securities: Allcargo Logistics - Trying To Stitch Through An Integrated Offering
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
The total consideration for Allcargo Logistics Ltd.’s acquisition of 46.86% stake in Gati Ltd. has been approximately Rs 4.29 billion.
Gati’s Q1 FY21 operating results, though, did disappoint with approximately Rs 263 million Ebitda loss.
There are multiple efforts being undertaken by the Allcargo’s management to
1. improve operational efficiency 2. invest necessary equity and 3. recover outstanding dues from all parties including earlier management for excess managerial remuneration in Gati’s subsidiaries.
The deal with Blackstone for the transfer of logistics park portfolio is underway with Rs 2.37 billion of money received till date and another Rs 590 million lease rental discounting upstreamed to Allcargo.
The Company’s board has received and accepted the delisting offer from ‘promoters’.
Net debt stands at approximately Rs 10 billion, and management expects the same to increase to Rs 13.5 billion as Gati acquisition completes.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.