Allcargo Terminals Limited (ATL) announced on Friday, January 17, 2025, the outcome of its board meeting, which included approving a preferential issue of equity shares for acquiring the remaining 15% stake in Speedy Multimodes Limited (SML). This acquisition will make SML a wholly-owned subsidiary of ATL.
Key Highlights of the Announcement:
- Preferential Issue:
ATL will issue 63,64,800 equity shares at an issue price of ₹42.4 per share to Mr. Ashish Chandna, CEO of both ATL and SML. This share issuance is in lieu of acquiring 15% of SML’s equity shares held by Mr. Chandna at ₹66.3 per share. - Strategic Impact:
The acquisition aligns with ATL’s objective of enhancing operational efficiency. It is expected to provide regulatory, procedural, and operational advantages for the company. - Completion Timeline:
The acquisition process will be completed within 15 days from receiving member and regulatory approvals or by March 31, 2025, whichever is later. - Background on Speedy Multimodes Limited:
SML, incorporated in 1987, operates Container Freight Stations and Inland Container Depots. It specializes in bonded and non-bonded warehousing and import/export handling of various cargo types. Key facilities are located near major ports such as JNPT and Mundra.- Revenue Performance:
- FY 2023-24: ₹23,550.32 lakh
- FY 2022-23: ₹24,005.36 lakh
- FY 2021-22: ₹25,442.96 lakh
- Revenue Performance:
- Additional Details on Share Issuance:
- Post-allotment, Mr. Ashish Chandna will hold 2.53% of ATL’s equity.
- The transaction will be executed through a share swap mechanism.
TOPICS:
Allcargo Terminals