Mahindra Logistics climbs 6% on Rivigo's acquisition announcement

Shares of domestic supply chain and mobility company rallied nearly 6 per cent to Rs 533.60 in Tuesday’s trade after the logistics solution provider announced the acquisition of the B2B express business of Gurugram-based logistics firm Rivigo Services.

Mahindra Logistics and technology-based logistics company Rivigo Services have reached an agreement wherein the former will acquire the latter’s business-to-business express operations for Rs 225 crore.

According to disclosure to the exchanges, Mahindra Logistics on Monday entered into a business transfer agreement with Rivigo Services and its promoter for the acquisition of the B2B or business-to-business express operations of Rivigo along with all rights, title, beneficial ownership and interest therein, as a going concern, on slump sale basis.

Mahindra Logistics will also acquire the customers, team and assets of Rivigo's B2B express operations, the technology platform and the Rivigo brand. The acquisition is slated to be completed on or before November 1.

In 2021-22 (Apr-Mar), Rivigo's business-to-business express operations recorded revenues of Rs 371.3 crore.

At 10.10 am, the scrip was trading 2.56 per cent higher at Rs 517.45 over the last day’s closing price of Rs 504.55 apiece. The stock has risen nearly 12 per cent in the last six months while it is down about 26 per cent year-to-date.

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