Gati zooms over 50% post Q2 results

The stock rallied 58% to Rs 314 from Rs 199 on October 30, after reporting more than doubled net profit in September quarter.

Gati has soared 18% to Rs 314, extending its post results rally, on back of heavy volumes on the bourses.

The trading volumes on the counter surged nearly three-fold with a combined 9.35 million shares representing 10.7% total equity of the company changed hands till 1512 hours on NSE and BSE.

Currently, shares of logistic company is quoting at its record high, zoomed 58% from Rs 199 since October 30, after it reported more than double consolidated net profit at Rs 12.49 crore for the second quarter ended September 30, 2014. The company had profit of Rs 5.76 crore in the corresponding quarter previous year.

The company said it has sold a minority stake in its cold chain unit—Gati Kausar India Ltd—to Mandala Capital AG Fund Ltd and Mandala Agribusiness Investments II Ltd raising Rs 150 crore.

Of the Rs 150 crore, Rs 30 crore has been invested in the form of equity shares and compulsorily convertible preferential shares and the rest Rs 120 crore in non-convertible bonds, Gati said in a statement.

Mandala Capital manages private equity funds that invest in companies focused on the agribusiness sector within the Indian subcontinent.

The funds raised by Gati Kausar will be utilized primarily for building a network of cold warehouses across the country over the next three years, enabling the company to offer integrated cold chain logistics and supply chain management, as well as value-added services, Gati said.