International supply chain business moves to Allcargo Global as domestic units integrate into parent firm
Allcargo Logistics on Monday said its restructuring plan involving the demerger of its international supply chain business and the merger of its domestic logistics units has come into effect from 1st November.
Under the approved composite scheme of arrangement, the company has demerged its international supply chain business into a new entity, Allcargo Global. The move is aimed at creating focused, independent entities to drive efficiency and value for shareholders, the company said in a statement.
Following the demerger, the domestic express distribution and consultative logistics businesses — including operations under Allcargo Gati, GESCPL, and ASCPL — will be merged into Allcargo Logistics. The integration is expected to strengthen the company’s position in India’s growing express and contract logistics market.
The Mumbai Bench of the National Company Law Tribunal (NCLT) had approved the scheme on 10 October. The company’s board has fixed 12 November as the record date, after which shares of Allcargo Logistics will trade ex-international business.
Shareholders of Allcargo Logistics will receive one share each in Allcargo Logistics and Allcargo Global for every share held. Investors holding shares in Allcargo Gati will be allotted 63 shares of Allcargo Logistics (post-demerger) for every 10 shares held in Allcargo Gati, the company said. The listing of Allcargo Global will take place following the necessary regulatory approvals.
Allcargo said the restructuring will streamline its operations and enable a sharper focus on its domestic and global business segments, enhancing synergy and long-term value creation.
