Money & Banking

Allcargo retreats from delisting plan as public shareholders vote against the offer

Our Bureau Mumbai | Updated on September 13, 2021

Don’t have plans to reinitiate delisting process for any of the firm’s listed entities, says a source

 

Allcargo Logistics has dropped plans to delist the company after public shareholders voted against the offer to take the company private.

The firm led by Shashi Kiran Shetty said it will continue to drive its ambitious growth plans as a listed entity, multiple sources briefed on the plan said.

This comes against the backdrop of a strong economic revival and significant growth in the logistics sector over the last one year.

“We respect the decision by the shareholders. A lot has changed in the last 12 months, since we launched the delisting offer. The primary purpose of delisting was to facilitate growth of various businesses. It would have been challenging to raise funds for growth one year ago, without restructuring and going private. However, in the current environment, we are confident of driving the company’s growth as a listed entity,” company sources said.

“Allcargo will explore the right steps forward to pursue its growth ambitions so that all stakeholders will benefit from it. We don’t have any plans to reinitiate the process for delisting any of our listed entities,” the source said, asking not to be named.

Strong performance

The process for delisting was announced in August 2020 after the pandemic hit the entire economy and the promoters felt the need to restructure and infuse funds for its growth and investment plans. After changes in regulations, shareholder approval had to be re-initiated and the promoters sought the approval post getting the nod from the board.

“All businesses in the group are now undergoing a holistic transformation, with focus on asset-light model and increased stress on digitalisation. The improved performance, driven by strong management across the board, has helped the company efficiently manage its working capital challenges during the crisis period, as well as the funds for acquisitions. The company continues to demonstrate strong performance,” he added.

Allcargo informed the BSE on Monday that the special resolution for delisting its shares was not passed by public shareholders with the requisite majority till September 10, the last date set for remote e-voting.

Published on September 13, 2021

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