The stock of Allcargo Logistics has gained 1.29 percent in the last five days and is currently trading at Rs 196 on the NSE. The company has been in focus ever since it announced that Allcargo Belgium NV, the wholly owned subsidiary of Allcargo Logistics Ltd, is set to enter a joint venture agreement with Swedish player Nordicon Group.

The company is set to hold 65 percent stake in ECU Worldwide JV with Nordicon retaining the balance 35 percent. This is the second large overseas acquisition by Allcargo Logistics, snapping up 65 percent ownership in a USD 44 million joint venture it has just set up with the Nordicon Group. To discuss this and their deleveraging plan going forward, CNBC-TV18 spoke to Shashi Kiran Shetty, Group Chairman of the company.

On delisting, Shetty said, “We are at the end of the delisting process, we haven’t really filed the price and we are going through the whole process. We are ready and I think the offer will be made very soon. I obviously can't talk more on that because it is not announced as yet. But, the reason why we went delisting at that time, we found the price very attractive for the shareholders and for the value that was there at that time, and we did not know how the COVID situation would pan out. So obviously, the markets have changed, and we are happy that the valuation is where it is right now.”

On double-digit margins, Shetty said, “I think we got hit by the second wave of COVID in the first quarter of this year, so that will have some impact. But I think in all likelihood, we would cross Rs 1300 and also the margin should go into double digit in this financial year itself.”

For full management commentary, watch the video.

(Edited by : Dipika)

First Published:Aug 5, 2021 2:20 PM IST