Eiko Lifesciences Limited shares surged 10% on December 18, 2024, hitting ₹67.36 following the announcement of a major logistics agreement by its subsidiary EikoVivify Logistics Private Limited. The company has entered into a significant Container Service Management Agreement with S J Logistics (India) Limited to expand its logistics operations.
Key Details of the Agreement:
- Value: ₹65 crore over 5 years, with options for renewal.
- Scope: Leasing, renting, and management of 2,500 TEUs/cargo containers for logistics, storage, and goods transportation.
- Services: Includes maintenance, container management solutions, and leasing of water transport equipment.
- Strategic Objective: Enhance backward and forward integration to mitigate operational risks.
About the Partnership
S J Logistics, a leading international logistics service provider with a market cap of ₹1,000 crore, specializes in freight forwarding, warehousing, and project cargo services. The partnership marks a pivotal step for Eiko Lifesciences to capitalize on the growing demand in the logistics sector, leveraging its subsidiary’s expertise in container management.
The agreement is expected to create a steady revenue stream for Eiko while expanding its presence in logistics. Investors reacted positively to this development, leading to a sharp surge in the company’s stock price.
