- International Supply Chain business will be demerged into a new listed entity named Allcargo Global Limited
- The domestic express and contract logistics business, to be consolidated under Allcargo Logistics Limited
- Shareholders of Allcargo Logistics Limited will hold 1shareeach in Allcargo Logistics and demerged Allcargo Global on a 1:1 basis
- Shareholders of Allcargo Gati Limited to receive 63 shares of Allcargo Logistics Limited for every 10 shares held in Allcargo Gati Limited.
- Record dates will be announced by the respective boards in coming weeks, as per process.
Mumbai : Allcargo Logistics Limited, India’s largest integrated, end-to-end logistics solutions provider, has announced the approval by the National Company Law Tribunal (NCLT), Mumbai Bench, for the Composite Scheme of Arrangement under Sections 230 to 232 of the Companies Act, 2013. The approval marks the completion of the legal process for the organisation’s restructuring plan covering its express distribution, contract logistics and international supply chain business.
Under the approved scheme, the International Supply Chain business of Allcargo Logistics Limited will be demerged into a new listed entity, named Allcargo Global Limited. The domestic express and contract logistics business, which is currently housed under Allcargo Gati, Gati Express & Supply Chain & Allcargo Supply Chain, respectively, will be consolidated under Allcargo Logistics Limited, which continues as the listed company. This restructuring enables both international and domestic business to operate independently, with clearer strategic focus, dedicated management oversight, and efficient capital allocation. It also provides a simplified structure that allows shareholders to assess and participate in each business segment directly.
As per the approved scheme, Shareholders of Allcargo Logistics Limited holding shares as on the record date, will receive shares in the demerged Allcargo Global on a 1:1 basis, while continuing to hold their shares in the resulting Allcargo Logistics Limited. Shareholders of Allcargo Gati Limited as on record date will receive 63 shares of Allcargo Logistics Limited (post demerger of the international supply chain business) for every 10 shares held in Allcargo Gati Limited.
Ravi Jakhar, Group Chief Financial Officer (CFO) and Director – Strategy, Allcargo Logistics Limited said, “The restructuring empowers our flagship businesses with strategic independence, while creating synergies through customer integration in express and contract logistics, and direct shareholding in operating entities. It establishes clear financial accountability with leadership team focused on growth, returns, and a digital-first approach. We remain committed to creating sustainable value for our stakeholders.”
With receipt of the NCLT order, the company will now proceed with filing the sanctioned scheme with the Registrar of Companies with certified copies, and initiate steps for implementation, including determination of record dates, share allotment, and subsequent listing of the demerged entity in accordance with applicable regulatory requirements. This milestone concludes the long-term plan of Allcargo Group’s strategic reorganization, which had been ongoing for past four years.
Post completing the restructuring, Allcargo Group will eventually have four listed strategic business undertakings. Allcargo Global will have International Supply Chain business, Allcargo Logistics (post demerger) will have domestic logistics. Allcargo Terminals Limited and TransIndia Real Estate Limited, which were created through an earlier scheme of arrangement continue with CFS/ICD and real estate businesses respectively.
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