Allcargo Logistics enters express segment with Rs 450-crore Gati stake buy

The company has already chalked out a plan to become a majority stakeholder in the express business

Allcargo Logistics, part of the Avvashya Group, has forayed into express logistics segment by acquiring a 44.64 per cent stake in Gati.

“The stake buy is a combination of 10 per cent promoter shareholding that will trigger an open offer of 26 per cent and balance will be via preferential shares. This will bring the total deal size to Rs 416 crore,” Shashi Kiran Shetty, founder and chairman of Allcargo Logistics, said on Thursday.

Founded by Mahendra Agarwal in 1989, Gati pioneered express distribution in India. Today, Gati offers a variety of offers, spanning from express distribution to third-party (3PL) operations. As