Allcargo Logistics share price rallies 20% to hit fresh 52-week high on delisting proposal

The board of directors of the company will be meeting on August 27, 2020, to consider the proposal for voluntary delisting of the equity shares of the company.

Allcargo Logistics share price hit 20 per cent upper circuit of Rs 130.80 apiece, which is also its 52-week high on BSE after the company informed that promoters Shashi Kiran Shetty and Talentos Entertainment Private Ltd (TEPL) are considering to delist the stock. Allcargo Logistics shares touched a 52-week low of Rs 51.50 apiece in March this year, since then it has rallied 154 per cent, taking the market capitalisation of the company to Rs 3,213.70 crore. The board of directors of the company will be meeting on August 27, 2020, to consider the proposal for voluntary delisting of the equity shares of the company.

“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, acquire all the fully paid-up equity shares of the Company; and voluntarily delist the Equity Shares of the Company from the BSE and NSE in accordance with the Sebi Delisting Regulations if the Delisting Offer is successful,” Allcargo Logistics said in a BSE exchange filing.

As of the date, the members of the promoter group collectively hold 17.20 crore equity shares aggregating to 70.01 per cent of the paid-up equity share capital of the company. The public shareholders hold 7.36 crore equity shares aggregating to 29.99 per cent of the paid-up equity share capital of the company.

A meeting of the board of directors will be held on Thursday to consider the delisting proposal, appointment of a merchant banker registered with the Sebi and to obtain from the stock exchanges, details of trading in shares of the company for a period of two years prior to the date of board meeting. “In accordance with the company’s code of conduct to regulate, monitor and report trading by insiders, the trading window of the company is currently closed pending declaration of the unaudited standalone and consolidated financial results for the quarter ended June 30, 2020, and shall open 48 hours after the declaration of the results,” it said in a BSE filing.