Logistic stock declares 162.5% dividend, FII raises stake in Q3

With a market valuation of ₹9,197 Cr, Allcargo Logistics is a small-cap company that engages in the courier services industry. The leading logistics provider in India, Allcargo Logistics is a well known solution for supply chain management that offers logistics services in more than 180 nations. A 162.5% interim dividend has been declared by the company’s board of directors for eligible shareholders, and a record date has also been set for this purpose.

“This is to inform you that the Board of Directors of the Company at its Meeting held today i.e., Monday, March 6, 2023, inter alia, approved declaration of an Interim Dividend of ₹3.25/- (Rupees Three and Twenty Five Paisa Only) i.e. (162.5%) per equity share of ₹2/- each (Rupees Two Only). The Interim Dividend will be paid/dispatched to all the shareholders of the Company on or after Thursday, March 16, 2023 whose name are registered as shareholders of the Company as on the record date i.e. Wednesday, March 15, 2023,” said Allcargo Logistics in a stock exchange filing.

The plan to acquire a 38.87% stake from its partners at a price of Rs. 373 crores has been authorised by the board of directors of Allcargo Logistics Ltd on Monday. Following the transaction, Allcargo Logistics’ stake in contract logistics business will grow to 100%. Commenting on the contract logistics acquisition, Shashi Kiran Shetty, Founder & Chairman, Allcargo Group said, “This important acquisition will offer us management control and facilitate strategic decision-making. This will help us enhance service delivery capabilities to drive growth. The business has witnessed robust growth over the years diversifying into several new industry segments. We can also expect more synergy between contract logistics and express distribution to further strengthen group’s position in the fast-growing express and contract logistics space.”

The Contract Logistics business of Allcargo manages inventory and offers reputable Indian and foreign customers in the chemical, auto, e-commerce, and other industries third party supply chain solutions. The company is in charge of a surface capacity of more than 5 million square feet, and it announced Q3 FY22/23 EBITDA of ₹31 Cr.

The Board also announced on Monday that they have approved sale of smaller non-core customs clearance business. Allcargo Logistics will sell its 61.13% stake in this business for an enterprise value of approx. ₹42 Cr. Commenting on the overall developments, Mr. Shetty, added, “We continue to exit non-core businesses and consolidate our core businesses. Post demerger of Allcargo Terminals and TransIndia, which has already received NCLT approval, the company shall now have two distinct business segments under International Supply Chain and Express & Contract Logistics. This would lead to sharper focus and enhance growth prospects for the group.”

On Monday, the shares of Allcargo Logistics closed on the NSE at ₹375.10 apiece, up by 1.30% from the previous close of ₹370.30. In the last 1 year the stock has gained 24.23% and on a YTD basis, it has fallen 7.64% so far in 2023. The stock touched a 52-week-high of ₹495.00 on (14-Nov-2022) and a 52-week-low of ₹249.20 on (20-Jun-2022). During Q3FY23, the company recorded a promoter shareholding of 69.91%, FII stake of 10.12%, DIIs stake of 2.20% and public stake of 17.75%. 

Promoters’ stake remains constant at 69.92% in Dec 2022 quarter, FII/FPI have raised their stake from 9.22% in September 2022 quarter to 10.12% in December 2022 quarter, and the number of FII/FPI investors went up from 136 in Q2FY23 to 156 in Q3FY23, mutual funds stake went up from 1.35% in Q2FY23 to 1.36% in Q3FY23, and institutional investors holdings went up from 11.35% in Q2FY23 to 12.32% Q3FY23, as per Trendlyne data.

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