Allcargo Logistics receives NCLT approval for restructuring plans

Logistics operator Allcargo Logistics on Monday said it has received the NCLT approval for its restructuring plan to demerge its international supply chain business into a new listed entity.

Under the approved scheme, the international supply chain business of Allcargo Logistics Limited will be demerged into a new listed entity -- Allcargo Global Limited, according to the company.

The domestic express and contract logistics businesses, currently housed under Allcargo Gati, Gati Express & Supply Chain and Allcargo Supply Chain, will be consolidated under the listed company Allcargo Logistics Limited, it added.

Post-restructuring, Allcargo Group will eventually have four listed strategic business undertakings.

Allcargo Global will have an international supply chain business, while domestic logistics will come under Allcargo Logistics (post demerger).

Allcargo Terminals Limited and TransIndia Real Estate Limited, which were created through an earlier scheme of arrangement, continue with CFS/ICD and real estate businesses, respectively, it added.

The restructuring enables international and domestic businesses to operate independently, with clearer strategic focus, dedicated management oversight, and efficient capital allocation.

It also provides a simplified structure that allows shareholders to assess and participate in each business segment directly, Allcargo Logistics Ltd said.

Allcargo Group's strategic reorganisation has been ongoing for the past four years.

"The restructuring empowers our flagship businesses with strategic independence, while creating synergies through customer integration in express and contract logistics, and direct shareholding in operating entities. It establishes clear financial accountability with a leadership team focused on growth, returns, and a digital-first approach," said Ravi Jakhar, Group Chief Financial Officer (CFO) and Director - Strategy, at Allcargo Logistics Limited.

As per the approved scheme, shareholders of Allcargo Logistics Limited will receive shares in the demerged Allcargo Global on a 1:1 basis, while continuing to hold their shares in the resulting Allcargo Logistics Limited.

On the other hand, shareholders of Allcargo Gati Limited as of the record date will receive 63 shares of Allcargo Logistics Limited (after demerger of the international supply chain business) for every 10 shares held in Allcargo Gati Limited, as per the company.

With receipt of the National Company Law Tribunal (NCLT), Mumbai Bench, order, the company will now proceed with filing the sanctioned scheme with the Registrar of Companies with certified copies, and initiate steps for implementation, including determination of record dates, share allotment, and subsequent listing of the demerged entity in accordance with applicable regulatory requirements, it said.

Post completing the restructuring, Allcargo Group will eventually have four listed strategic business undertakings.

Allcargo Global will have the International Supply Chain business, and Allcargo Logistics (post demerger) will have domestic logistics. Allcargo Terminals Limited and TransIndia Real Estate Limited, which were created through an earlier scheme of arrangement, continue with CFS/ICD and real estate businesses.