“We still have a few of them (non-core assets) left out and (for) a couple of them, we have already got the buyer and we will be releasing the news of sale in the next month itself,” said Pirojshaw Sarkari, Managing Director and Chief Executive Officer, Allcargo Gati Ltd, to ET Infra in an interaction on November 24. He did not disclose the potential sale amount.
As part of its strategy to hive off non-core assets, the company in the last few years has undertaken divestment of its holdings in cold chain solutions arm Gati Kausar India, sale of transport vehicles, buildings and land properties, among others.
According to ICICI Securities, the company reduced the total debt from Rs. 152 crore from March 2022 to Rs. 73 crore as on Mar 2023.
The company is also planning to sell off its fuel station business, which Sarkari outlined will require approval from the government.
According to a report by Nuvama Wealth and Investment Limited (formerly known as Edelweiss Broking) dated November 17, of the Rs. 81 crore worth of assets held for sale, Gati has received an advance of Rs. 18 crore and expects to liquidate the remaining assets by end of March 2024.
In 2020, Allcargo Logistics Ltd, acquired a majority stake in Gati and since then the latter has focused on deleveraging its balance sheet and has adopted an asset-light model strategy.
