Promoter Shetty hikes stake in Allcargo by 0.5% to 62.22%

Shashi Kiran Shetty, the promoter of Allcargo Logistics, has increased his stake in the company by over 0.50 per cent through two block deals, according to exchange data.

The deal put the company scrip onto a rally, closing over 5.6 per cent higher on the BSE at Rs 117.30 after hitting a high of Rs 119.45 on a day the Sensex jumped 0.75 per cent.

Shetty bought around 24.7 lakh shares at Rs 110 each in two block deals, aggregating to around Rs 25 crore, as per the exchange data.

As of the March quarter, Shetty and his family held 69.11 per cent in the company, of which Shetty alone held 61.72 per cent. After this transaction, his holding has increased to 62.22 per cent.

According to an industry analyst, the deal shows the confidence of the promoter in the company given the bullish outlook the logistics sector enjoys.

According to industry reports, the logistics sector has gained the most from the implementation of GST with the operational cost of firms expected to come down by 20-30 per cent on removal of the interstate VAT checkposts.

By 2020, the logistics market is expected to grow over 12 per cent annually and touch USD 302 billion, as per industry estimates.