The company had earlier fixed November 10 as the record date, but has now revised it to November 12. The demerger became effective on November 1, following the filing of the National Company Law Tribunal (NCLT) order.
Allcargo Gati, which was part of the restructuring, stands dissolved without winding up and has been amalgamated with Allcargo Logistics. Consequently, trading in Allcargo Gati’s shares has been suspended and will soon be delisted from the stock exchanges.
Strategic restructuring
The Scheme of Arrangement, sanctioned by the NCLT, involves multiple entities, including Allcargo Supply Chain, Gati Express & Supply Chain, and Allcargo Global. The objective is to create two focused, independent listed entities:Allcargo Global, housing the company’s international supply chain business, operates freight forwarding, ocean, and air logistics across more than 180 countries. Allcargo Logistics will retain and grow the company’s domestic express distribution, supply chain management, and logistics infrastructure businesses.
The separation aims to streamline operations, strengthen business focus, and unlock long-term value for shareholders by allowing each vertical to pursue independent growth strategies.
The move comes as the logistics sector in India witnesses rapid expansion, supported by GST-led formalisation, rising e-commerce activity, and infrastructure development under the National Logistics Policy.
What the demerger means for investors
Post-demerger, Allcargo Logistics shareholders will hold shares in both Allcargo Logistics (domestic business) and Allcargo Global (international operations). The share entitlement ratio has been set at 1:1, meaning every shareholder of Allcargo Logistics will get one fully paid share of Allcargo Global for each share they own.The move could lead to better valuation discovery for both businesses, as investors will now be able to assess their performance and financial metrics separately.