Allcargo Gati raises Rs 169.28 crore through QIP

Allcargo Gati (Formerly Gati), one of India’s leading express logistics company, has raised Rs 169.28 crore by way of issue of equity shares through qualified institutional placement (QIP).

The fund raise committee of the Board of Directors, at its meeting held on June 28, 2024, had approved the issue, and allotment to successful buyers will be at Rs 101 per share, says an official release.

"We are pleased with the response to our QIP, which underscores investor confidence in our business strategy and market position," says Pirojshaw (Phil) Sarkari, MD & CEO, Gati Express and Supply Chain (GESCPL). "The funds raised will strengthen our financial position and support our growth initiatives across key segments. The proceeds from the QIP will be invested towards technology, infrastructure and deleveraging the balance sheet, paving way for strong growth of the company.

"Allcargo Gati is entering a new growth phase with a sharp focus on superior customer experience through digital innovation. As part of the Allcargo Group, we are steadfast in our commitment to delivering value to our stakeholders and fostering sustainable growth within the logistics sector. Leveraging the Group's established legacy and leadership, we are well-positioned to achieve sustained long-term growth.”

The stock closed today with a loss of over 10 percent at Rs 99.40 on the BSE and Rs 99.49 on the NSE.