Allcargo Logistics rises 5% after WisdomTree Emerging Markets buys stake

Allcargo Logistics shares rose 4.6 per cent on BSE, logging an intra-day high at ₹36.3 per share. At 10:07 AM, Allcargo Logistics' share price was up 2.34 per cent on BSE at ₹35.49 per share. In comparison, the BSE Sensex was up 0.5 per cent at 83,018.93.

 

The market capitalisation of the company stood at ₹3,483.96 crore. The 52-week high was at ₹61.34 per share, and the 52-week low was at ₹26.01.  

What led to a rise in Allcargo Logistics shares?

The buying on the counter came after WisdomTree Emerging Markets High Dividend Fund acquired stakes through a bulk deal. 

 

 

WisdomTree Emerging Markets High Dividend Fund bought 68,17,024 shares of Allcargo Logistics for ₹34.15 per share. 

 

According to the shareholding pattern of Allcargo Logistics, promoters held a 63.28 per cent stake in the company as of the June quarter. Among the public shareholders, Tata Mutual Fund - Tata Small Cap Fund held a 1.74 per cent stake, and Alternate Investment Funds held a 0.39 per cent stake. 

 

Acacia Institutional Partners (1.46 per cent stake), Lp, Acacia Partners (1.68 per cent stake), Lp, and Acacia Conservation Fund Lp (1.85 per cent stake) were among the foreign investors.

 

That apart, recently, Allcargo Logistics secured approval from the National Company Law Tribunal (NCLT) for its restructuring plan, which involves demerging its international supply chain business into a new listed entity.

 

Under the sanctioned scheme, the international supply chain operations of Allcargo Logistics Limited will be spun off into a new publicly traded company, Allcargo Global Limited. Meanwhile, the domestic express and contract logistics businesses, currently managed by Allcargo Gati, Gati Express & Supply Chain, and Allcargo Supply Chain, will be consolidated under the existing listed entity, Allcargo Logistics Limited.

 

Following this restructuring, the Allcargo Group will ultimately comprise four distinct listed strategic business undertakings. Allcargo Global will manage the international supply chain, while the domestic logistics will fall under Allcargo Logistics (post-demerger). Allcargo Terminals Limited and TransIndia Real Estate Limited, established through a previous arrangement scheme, will continue to handle container freight station/inland container depot (CFS/ICD) and real estate operations, respectively.

 

This restructuring aims to enable the international and domestic businesses to operate autonomously, benefiting from a clearer strategic focus, dedicated management oversight and more efficient capital allocation.