Allcargo Gati Limited (formerly known as Gati Limited) has made an important announcement regarding the sale of its fuel stations located in Indore and Bengaluru. This decision was taken following a resolution passed by the company’s Board of Directors on March 7, 2025. The sale is subject to the approval of the company’s shareholders, and the transactions are expected to be completed by April 2025.

The sale of the Indore Fuel Station and Bengaluru Fuel Station is part of the company’s strategy to streamline its assets. Below are the key details of the proposed sale:

Details of Indore Fuel Station Sale

• Turnover Contribution: The Indore Fuel Station contributed ₹36.53 crore (16%) to the company’s turnover for the financial year 2023-24.
• Net Worth Contribution: The net worth of the Indore Fuel Station is ₹1.34 crore (0.18% of the company’s net worth).
• Sale Consideration: The station will be sold for ₹7.5 crore.
• Buyer Information: The joint buyers are M/s. Siddhi Infra, represented by Mr. Rajesh Kumar Baranwal and Ms. Anju Baranwal, neither of whom belong to the company’s promoter group or related companies.
• Transaction Type: This is not a related party transaction, and the sale is outside the Scheme of Arrangement.

Details of Bengaluru Fuel Station Sale

• Turnover Contribution: The Bengaluru Fuel Station contributed ₹146.79 crore (64%) to the company’s turnover for the financial year 2023-24.
• Net Worth Contribution: The net worth of the Bengaluru Fuel Station is ₹8.10 crore (1.10% of the company’s net worth).
• Sale Consideration: The Bengaluru Fuel Station will be sold for ₹10 crore.
• Buyer Information: The buyer is M/s. SA Fuel Private Limited, based in Gurgaon, Haryana. Like the buyers of the Indore station, SA Fuel does not belong to the company’s promoter group or related entities.
• Transaction Type: This sale is also not a related party transaction, and it is outside the Scheme of Arrangement.

Approval Process and Compliance

The sale of both fuel stations requires shareholder approval, which will be sought in an upcoming shareholder meeting. Additionally, the company is ensuring compliance with Regulation 37A of the SEBI LODR Regulations, which governs the disclosure requirements for such transactions.

Impact of the Sale on the Company

The sale of these assets, while significant in terms of the value involved, does not seem to have a material impact on the company’s overall financial performance. The turnover and net worth contribution of both fuel stations, though notable, are not sufficient to disrupt the company’s operations.

Next Steps for Allcargo Gati

1. Shareholder Meeting: Allcargo Gati will seek approval from its shareholders for the sale of the fuel stations.
2. Expected Completion: The company anticipates that the sale will be completed by April 2025, pending shareholder approval.
3. Continued Business Operations: Allcargo Gati continues to operate its core logistics and cargo business, and the sale of the fuel stations will not disrupt its primary activities.

Conclusion

The sale of the Indore and Bengaluru fuel stations marks a strategic move by Allcargo Gati Limited to divest non-core assets and streamline its operations. The company is adhering to all regulatory requirements for disclosure under SEBI's Listing Regulations, ensuring full transparency in the process. Investors and stakeholders will be watching closely as the company moves forward with this asset sale, which will significantly enhance its financial position once completed.