Allcargo Gati Limited Raises ₹169.28 Crore via QIP

On July 2, 2024, Allcargo Gati Limited (previously known as Gati Limited) announced a successful fundraising through Qualified Institutional Placement (QIP), raising ₹169.28 crore. This capital infusion was achieved by issuing equity shares at an issue price of ₹101 per Equity Share, approved by the Fund Raise Committee of the Board of Directors in a meeting held on June 28, 2024. The QIP garnered participation from various qualified institutional buyers, reflecting confidence in the company’s prospects and strategy.

The successful QIP underscores Allcargo Gati’s ability to attract institutional investment, bolstering its financial position to support future growth initiatives and operational expansions. With a focus on improving service delivery and expanding market reach, the company continues to navigate competitive dynamics while leveraging strategic investments to enhance customer satisfaction and operational efficiency in the logistics sector.

Sharing his thoughts on the QIP, the Managing Director and CEO of Gati Express and Supply

Chain Pvt. Limited (GESCPL), Pirojshaw (Phil) Sarkari, said, “We are pleased with the response to our QIP, which underscores investor confidence in our business strategy and market position. The funds raised will strengthen our financial position and support our growth initiatives across key segments.”

He added that the QIP proceeds will be allocated towards technology, infrastructure, and debt reduction, paving the way for significant company expansion. Positioned for a new growth phase, Allcargo Gati emphasises enhancing customer experiences through digital innovation.

The MD and CEO also stated that as part of the Allcargo Group, the company remains committed to delivering value to stakeholders and fostering sustainable growth in the logistics sector, leveraging its established legacy and leadership for sustained long-term success.

Additionally, in a separate disclosure, Allcargo Gati Limited reported key business metrics for May 2024. Total volume, encompassing both surface and air express services, reached 103kt, marking a notable 5% increase compared to May 2023 and a 6% rise from April 2024. This growth trajectory underscores the company’s effective sales acceleration initiatives and enhanced service parameters, driving sustained operational performance.

On July 2, 2024, the share price of Allcargo Gati Ltd opened at ₹107.00, touching the day’s low at ₹99.86, as of 1:22 PM on the NSE.

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