Allcargo Logistics' promoter plan to delist the company's equity shares; board to meet on August 27
Logistics-focused company Allcargo Logistics on Monday informed the stock exchanges that its promoter group has the plan to delist the equity shares of the company.
Logistics-focused company Allcargo Logistics on Monday informed the stock exchanges that its promoter group has the plan to delist the equity shares of the company. For the purpose, the board of the directors of Allcargo Logistics Limited will meet on August 27, 2020, to consider the proposal for voluntary delisting of the equity shares of the company.
The move will help the company to improve credit metrics, improve the financing of debt obligations, provide operational flexibility, cutting compliance costs and explore new financial structures.
The company said, "it has received a letter dated August 24, 2020 (the "Delisting Proposal Letter") from Shashi Kiran Shetty and Talentos Entertainment Private Limited ("TEPL"), members of the promoter and promoter group of the Company as defined under the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 (the "Promoter Group")."
In the Delisting Proposal Letter, Shashi Kiran Shetty and TEPL expressed their intention to, either individually/ collectively or together with other members of the Promoter Group, as the case may be,
1) Acquire all the fully paid-up equity shares of the Company, each equity share having a face value of INR 2/- ("Equity Shares"), held by the public shareholders of the Company (as defined under the SEBI Delisting Regulations, to be referred to as the "Public Shareholders"), subject to receipt of all necessary approvals, including relevant third party consents (the "Delisting Offer"); and
2) Voluntarily delist the Equity Shares of the Company from BSE Limited and National Stock Exchange of India Limited (the "Stock Exchanges"), where they are currently listed, each in accordance with the SEBI Delisting Regulations if the Delisting Offer is successful.
"As of the date, the members of the Promoter Group collectively hold 17,20,22,209 Equity Shares aggregating to 70.01% of the paid-up equity share capital of the Company. The Public Shareholders hold 7,36,73,315 Equity Shares aggregating to 29.99% of the paid-up equity share capital of the Company," the letter said.
Allcargo in its information also said that during the meet on August 27, the board will consider certain things
1) The Delisting Proposal
2) Appointment of a merchant banker registered with the Securities and Exchange Board of India for carrying out due diligence in accordance with the provisions under the SEBI Delisting Regulations.
3) To obtain from the Stock Exchanges, details of trading in shares of the Company for a period of 2 (two) years prior to the date of a board meeting by top 25 shareholders along with the details of off-market transactions of such shareholders for a period of 2 (two) years and obtain any other information that may be required by the merchant banker as it deems fit for carrying out the due diligence as required in terms of the SEBI Delisting Regulations; and
4) Any other matters incidental thereto.
Final price of delisting will be decided according to reverse book building.
Allcargo shares closed at Rs 108.85 on Tuesday, up 1.20% from the previous day's close.