Mumbai: Allcargo Logistics Ltd announced on Wednesday that its board has approved an investment of ₹1,76,840 in its associate company, Allcargo Group Services Private Limited. The investment involves subscribing to 60 equity shares, each with a face value of ₹10, issued on a Rights Basis.
Acquisition Details
The company will acquire 60 equity shares at a value of ₹1,76,840. The existing shareholding in Allcargo Group Services is 25%, and this transaction will not change the company's overall shareholding percentage.
Target Entity Profile
Allcargo Group Services Private Limited operates in Business Support Services. It was incorporated on September 1, 2018. The company reported a turnover of ₹18 lakh for FY 2025-26, ₹2,729 for FY 2024-25, and nil for FY 2023-24. The target entity's authorised capital is ₹1 crore, divided into 10 lakh equity shares of ₹10 each. It operates solely in India.
Rationale for Investment
Allcargo Logistics said the investment will enable group companies to participate in the profits and governance of the Target Company, commensurate with their respective shareholding. It also aims to ensure proper allocation of corporate and shared service costs among group entities.
Related Party Status
Allcargo Group Services Private Limited is an Associate Company and thus a “Related Party” under the Companies Act, 2013. The Promoters and Promoter Group have an interest in the Target Entity, which is held by entities including TransIndia Real Estate Limited, Allcargo Terminals Limited, Allcargo Global Limited, and Allcargo Logistics Limited.
Transaction Timeline
The acquisition is expected to be completed on or before September 30, 2026. The consideration will be paid in cash through banking channels.
Disclaimer: This story is based on company exchange filings and is for informational purposes only. Investors should evaluate risks before making decisions.
