Allcargo surges on acquisition of US-based logistic firm

The stock rallied 13% to Rs 101 on the National Stock Exchange.

Allcargo Logistics has surged nearly 13% to Rs 101 on NSE after the company has acquired Econocaribe Consolidators, a US-based logistics company for about $50 million.

The company said that the acquisition will strengthen and increase presence in the US market. Allcargo acquired Econocaribe through its Belgium-based subsidiary ECU Line, which collects small cargo and aggregates these into a full container load, known as an LCL (less than a container load) company.

Econocaribe Consolidators is the third largest non-vessel operating common carrier (NVOCC) in the US. An NVOCC does not own a vessel but acts as a carrier.

The deal will be funded by loans raised in Belgium (at a low interest rate of 3%) and from internal accruals of Ecu Line, the company said.

The stock opened at Rs 90.80 and hit a low of Rs 87 so far. A combined 81,300 shares change hands on the counter till 1415 hours on NSE and BSE.