According to the sources, Allcargo has signed a share purchase agreement with Gati’s promoter group to acquire up to 10.3 million shares at INR 75 apiece.
The platform Allcargo will also subscribe to a preferential issue of 13.3 million equity shares of Gati at INR 75 apiece, added source.
“The exponential rise in cross-border and domestic e-commerce has opened up new markets for traditional express players such as Gati. With Allcargo’s existing strength in the ocean transportation business and Gati’s expertise in land and air transportation, we are now in a unique position to offer our customers a suite of truly multimodal solutions,” said Shashi Kiran Shetty, chairman, Allcargo.
As per its LinkedIn page, Allcargo Logistics Ltd. is a logistics company headquartered in India.
Its services comprise global Multimodal Transport Operations (LCL, FCL and air services), pan India CFS & ICD operations, Project Forwarding & Crane Rental, E-commerce logistics, Ship Owning and Contract logistics.
With extensive global network and strategic international engagements, it operates across 164 countries through 301 offices.
Allcargo Logistics claims to be one of India’s largest publicly listed logistics companies. With the acquisition of ECU Worldwide, it is one of the largest LCL service providers in the world.
Allcargo provides a comprehensive range of services, such as multimodal transport operations, container freight station operations, or inland container depot operations, projects and engineering solutions, warehousing, distribution, contract logistics and logistics parks.
Gati, on the other hand, has a wide-ranging customer base across corporate India, e-commerce companies, as well as small and medium enterprises (SMEs). It has a presence across 727 districts and a service network that reaches out to 19,000 PIN codes across the country.
“With this strategic deal with Allcargo Logistics, we have entered a new era of consolidation in the domestic express logistics space. This collaboration also reiterates our commitment to ensure maximum outreach across untapped markets and provide benchmarked last-mile delivery solutions to our clients,” said Bala Aghoramurthy, deputy managing director, Gati.