The promoters of Allcargo Logistics Ltd. have proposed to delist the company as part of its efforts to pare debt.
The company said in an exchange filing on Aug. 24 that Shashi Kiran Shetty and Talentos Entertainment—the promoters of India's largest cargo company—have proposed to buy out the 29.99% stake held by its public shareholders, which amounts to nearly 7.37 crore shares.
The promoter group entities hold nearly 70.01% stake in the company—or nearly 17.2 crore shares, each with a face value or Rs 2.
The company's board, the filing said, is scheduled to meet on Aug. 27 to consider the proposal. The final offer price will be determined through reverse book building process in accordance with the market regulator's guidelines.
Delisting, the filing said, would give the company operational, financial and strategic flexibility due to the new company structure.
Shares of Allcargo Logistics have gained nearly 21% over the last year at a time when the broader Nifty 500 Index rose 8%.
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