The promoter and promoter group of Allcargo Logistics Ltd has announced an initial plan to acquire all the equity shares held by public shareholders and voluntarily delist from the stock exchanges by making a delisting offer under the delisting regulations of the stock market regulator SEBI.

The floor price determined in accordance with the delisting regulations will be informed in due course, the company said in a public announcement on Wednesday.

Shashi Kiran Shetty holds 15,25,19,341 equity shares, aggregating to 62.08 per cent of the paid-up equity share capital of the company, and Talentos Entertainment Private Limited and Avashya Holdings Private Limited do not hold any shares. The aggregate shareholding of the promoter group (including the acquirers) is 17,20,22,209 equity shares, aggregating to 70.01 per cent of the paid-up equity share capital of the company.

Allcargo said that the delisting would enhance the company’s operational, financial and strategic flexibility, including but not limited to corporate restructurings, acquisitions, exploring new financing structures, including financial support from the members of the promoter group.

The company’s long-term business plan involves expanding operations into new geographies and new business activities, which may have different risk profiles and longer gestation periods compared to the company’s current risk profile.

The proposed delisting will align the group's capital and operational structures, streamline the process of servicing the group's financing obligations and significantly improve a range of important credit metrics. As a result, the transaction is expected to support an accelerated debt reduction program in the medium term and, in turn, help the group's highly attractive longer-term growth pipeline.

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