Infra status: Near-term triggers for logistics sector

Benefits from GST would be gradual given the delay in e-way bill roll-out and gradual supply chain rationalisation

Shares of logistics companies have been gaining on the bourses after the government granted infrastructure status to the industry. The move is expected to help companies in the multimodal logistics space, which includes warehouses and inland container depots.
 
Analysts expect companies to be able to reduce their cost of funding, access infrastructure lending at easier terms with enhanced limits from commercial banks, access to longer duration funds, tap the external commercial borrowing route and refinance existing loans at competitive rates.
 
Says Amit Agarwal, deputy vice-president (research) at Kotak Securities, “The infrastructure status will ensure easier access to institutional