Gateway Distriparks Rises 15% as the Board Passes Business Restructuring
The company said that its board has approved t explore multiple structures for streamlining the companies currently being monitored by different group entities.
Shares of Gateway Distriparks (GDL) moved a bit higher by 15% to Rs. 108.20 on the BS on Thursday after the company announced its board approved to explore multiple structures for streamlining the companies currently being monitored by different group entities.
GDL is one of the leading integrated intermodal logistics leaders in India. Gateway Rail Freight, a subsidiary of GDL, provides intermodal logistics and operates rail-linked Inland Container Depots.
In an exchange filing, GDL said, the board of directors of the corporate at its meeting arranged on 3rd September 2020, has approved to explore multiple structures for streamlining its operations which are currently monitored by different group entities of the corporate.
“The group companies including Gateway Rail Freight, Gateway East India Private Limited, and evaluation of options for undertaking internal group restructuring (‘Proposed Restructuring’) as may be permitted under applicable laws, including but not limited to mergers, reverse merger, demerger or any other form of business restructuring which is beneficial to the Company and all stakeholders involved,” it said.
Going further, the Gateway Distriparks Group plans to use its land banks to further extend capacities and use its network, ready infra, and alignment with the Western Dedicated Freight Corridor to acquire the expansion once there’s an improvement in the macroeconomic factors, GDL said in FY 2019-2020 yearly report.
In August 2020, GDL had raised Rs. 116 crores through a rights offering for Rs. 72 per share. The rights entitlement ratio was four rights equity shares for each 27 fully paid-up equity shares held by the shareholders.
At 12.26 PM, the stock was trading at 8% higher at Rs. 101.80 on the BSE, as compared to a 0.27% decline in the S&P BSE Sensex. The trading volumes on the counter jumped three-fold with a combined 1.5 million equity shares changing hands on the BSE and NSE till the time of writing of this report.