Shares of express logistics and supply chain company Gati Ltd gained 14.7 per cent on Tuesday to close at ₹56.90 on the BSE, after the company said its Managing Director (MD) Mahendra Agarwal has resigned. The stock was ruling in the negative territory mostly during the day and it hit a low of ₹47.70. It jumped after the company informed exchanges that the MD has quit. The stock hit a high of ₹58.30 intra-day.

Gati Ltd said in its filing that Agarwal has stepped down from the position of Director, Managing Director and Key Managerial Personnel of the company with effect from September 28, pursuant to the share purchase agreement entered by him, along with two other promoter group members, with Allcargo Logistics Ltd.

Following this, Gati has cancelled the proposed extraordinary general meeting, which was scheduled to be held on September 30.

“In the circumstances, the extraordinary general meeting (EGM) of the members of the company, called on the requisition of Allcargo Logistics Limited, for removal of Mahendra Kumar Agarwal as Director and Managing Director, which is scheduled to be held on Wednesday, September 30, has become infructuous,” the notice added.

Earlier, Agarwal refused to step down from Gati despite Allcargo Logistics acquiring 47 per cent stake in the former. Currently, promoters hold 51.90 per cent stake in Gati, which include 1.74 per cent holding of Agarwal.

Earlier, a statement of deviation/variation in utilisation of funds raised through preferential issue for the quarter ended June 30, 2020 was issued.

The stock of Allcargo Logistics closed 3.25 per cent lower at ₹125.10 on the BSE.

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