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ICICI Securities: Allcargo Logistics - Trying To Stitch Through An Integrated Offering  

ICICI Securities: Allcargo Logistics - Trying To Stitch Through An Integrated Offering



A reachstacker moves a Freight Connection India Pvt. (FCIPL) Bay Lines branded shipping container as a truck reverses at Five Star Marine Services freight depot near Nhava Sheva Port in Navi Mumbai, India. (Photographer: Michael Nagle/Bloomberg)
A reachstacker moves a Freight Connection India Pvt. (FCIPL) Bay Lines branded shipping container as a truck reverses at Five Star Marine Services freight depot near Nhava Sheva Port in Navi Mumbai, India. (Photographer: Michael Nagle/Bloomberg)

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:

ICICI Securities Allcargo Q1FY21 Results Update.pdf

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