Allcargo Logistics rose 2.93% to Rs 107 as private equity firm Blackstone Group is investing Rs 380 crore to buy a majority stake in the warehousing business of the company.
Private equity firm Blackstone Group is investing Rs 380 crore to buy a majority stake in the warehousing business of Allcargo Logistics. The transaction is expected to conclude in a phased manner over the next 12 months.
Post conclusion of the transaction, Allcargo Logistics will cease to have sole control over certain subsidiaries engaged in the warehousing business, and will retain a minority stake in such subsidiaries.
The partnership between Blackstone and the company proposes to make further investment in the future to develop industrial and logistics parks across certain key markets of India.
Allcargo Logistics offers logistics services across multi-modal transport operations, inland container depot, container freight station operations, contract logistics operations, and project and engineering solutions.
The company reported 3.6% rise in consolidated net profit to Rs 64.02 crore on a 7.8% increase in net sales to Rs 1873.16 crore in Q2 September 2019 over Q2 September 2018.
Shares of Allcargo Logistics have risen 10.13% in four sessions from its recent closing low of Rs 97.15 recorded on 8 January 2020.
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