Allcargo Logistics Restructures With NCLT Nod, Gati Shareholders To Receive Allcargo Shares

Image Source : The Hindu Business Line

Allcargo Logistics has secured NCLT approval for its restructuring plan, demerging domestic and international businesses into separate listed entities. Gati shareholders will receive 10 Allcargo shares for every 63 held. The move aims to unlock value, sharpen strategic focus, and enhance investor participation across distinct logistics verticals.

Allcargo Logistics Ltd has received the National Company Law Tribunal’s (NCLT) approval for its long-awaited composite scheme of arrangement, marking a major milestone in its corporate restructuring. The move will see the demerger of its domestic and international businesses into separate listed entities, while Gati shareholders will be rewarded with a share swap in Allcargo Logistics.

Key Highlights From The Restructuring

- Gati shareholders will receive 10 shares of Allcargo Logistics for every 63 shares held, as part of the approved composite scheme.

- The restructuring will result in the creation of two distinct listed companies: one focused on international supply chain logistics and the other on domestic express and contract logistics.

- Shareholders of Allcargo Logistics will also receive shares in the newly demerged entity, ensuring continued participation in both business verticals.

- The NCLT’s approval clears the path for operational separation, improved capital allocation, and sharper strategic focus across business lines.

Strategic Rationale

The restructuring is aimed at unlocking value by aligning each business with its unique growth trajectory. The international logistics arm will focus on global freight forwarding and contract logistics, while the domestic entity will consolidate express distribution, warehousing, and last-mile delivery services.

Market Implications

Analysts view the move as a value-accretive step that enhances transparency and investor clarity. The share swap ratio for Gati shareholders is seen as fair, providing them with exposure to a larger, more diversified logistics platform. The restructuring is also expected to improve operational efficiency and attract targeted investor interest in each segment.

Leadership Commentary

Company executives have emphasized that the demerger will empower both entities to pursue independent growth strategies, raise capital more efficiently, and respond faster to market opportunities. The move is also aligned with Allcargo’s long-term vision of becoming a global logistics powerhouse with focused verticals.

Sources: Business Standard, Moneycontrol, Economic Times

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