Share price of Allcargo Logistics was locked in 20% upper circuit and touched a new 52-week high of Rs 130.8 in Tuesday's early session after its promoters proposed to delist the company's shares from BSE and NSE.
The company in its latest release announced that its promoter group, including Shashi Kiran Shetty and Talentos Entertainment, have intimated the company of their plans for delisting.
As per the delisting proposal letter, the promoters expressed their intention to, either individually/ collectively or together with other members of the Promoter Group, acquire all the fully paid-up equity shares of the company held by the public shareholders of the company, each equity share having a face value of Rs 2 and voluntarily delist the equity shares of the company from BSE Limited and National Stock Exchange of India.
Following the update, shares of Allcargo Logistics opened with a gain of 20% and touched an intraday high of Rs 130.8 on BSE against their earlier close of Rs 109. Allcargo Logistics stock has gained almost 25% in the last 4 days of consecutive gains. There are only buyers bids and no sellers offering the stock.
Allcargo Logistics is trading higher than 5, 20, 50, 100 and 200-day moving averages.
Allcargo Logistics stock price has risen 24% in one week and 34% since the beginning of this year. Market capitalisation of the firm stood at Rs 3,213.70 crore as of today's session.
According to the regulatory filing, the meeting will be held on August 27, 2020, in which the delisting proposal will be presented to the board of the company.
"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 added.
In the letter to the company, the promoters added that the proposed delisting will align the group's capital and operational structures, streamline the process of servicing the groups financing obligations and significantly improve a range of important credit metrics.
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