Shares of Allcargo Global Ltd listed on the bourses on Friday after its demerger from Allcargo Logistics.
Shares of Allcargo Global Ltd began trading at Rs 21 and later hit a high of Rs 22 on the BSE. But, it failed to hold on to the gains and declined 5 per cent to hit the lower circuit limit of Rs 19.95.
At the NSE, the stock listed at Rs 22 and later it hit the lower circuit of Rs 20.90, down 5 per cent.
The company’s market valuation stood at Rs 1,960.65 crore.
Allcargo Global Limited is listed on the bourses following its demerger from Allcargo Logistics earlier this year.
The market debut marks the completion of the Allcargo Group’s demerger and restructuring initiated four years ago to create sharper corporate structures and enhance operational focus, the company said.
Also, Allcargo Group now has four strategically focused listed entities – Allcargo Global, Allcargo Logistics Limited, Allcargo Terminals Limited and TransIndia Real Estate Limited.
“As Allcargo Global strengthens its leadership in LCL global consolidation, FCL, Air Freight and door-to-door services, amid a rapidly evolving global trade landscape, it carries forward that same ambition and reaffirms India’s growing stature as a global economic, manufacturing and logistics powerhouse,” said Shashi Kiran Shetty, founder and Chairman, Allcargo Group.
Pursuant to the scheme of arrangement approved by the National Company Law Tribunal, shareholders of Allcargo Logistics Limited received one equity share of Allcargo Global Limited for every one equity share held in Allcargo Logistics, resulting in a 1:1 share entitlement, the company said.