Allcargo Terminals Limited (ATL), a leading player in India's logistics sector, has announced a significant move to bolster its financial position and support its expansion plans. The company's Board of Directors has approved the issuance of fully convertible warrants on a preferential basis to its promoters and promoter group, aiming to raise Rs 38.28 crore.

Warrant Issue Details

The company plans to issue up to 1,32,00,000 fully convertible warrants, each convertible into one equity share of Rs 2.00 face value. The funds raised through this warrant issue will support ATL's three-year expansion plans, including new Container Freight Station (CFS) and Inland Container Depot (ICD) facilities.

Capacity Expansion Plans

ATL has outlined ambitious plans to expand its container handling capacity over the next three years. The company aims to increase its capacity from the current 8.3 lakh TEUs (Twenty-foot Equivalent Units) to over 13 lakh TEUs annually. This expansion will involve:

• Enhancing key facilities
• Developing new Container Freight Stations (CFS) and Inland Container Depots (ICD)
• Infrastructure upgrades at existing facilities

Strategic Rationale

The warrant issue comes at a crucial time for ATL, as the company seeks to strengthen its position in India's evolving logistics sector. The expansion plans are aligned with the company's vision to meet rising customer demand across trade hubs and support its growth outlook.

Management Commentary

Mr. Shashi Kiran Shetty, Founder & Chairman of Allcargo Group, stated, "The preferential allotment by the Promoter Group is a reaffirmation of our long-term commitment to Allcargo Terminals' vision and growth strategy. As India's logistics sector undergoes structural transformation, ATL is well positioned to scale up operational capacity while remaining capital-efficient and growth-focused, creating sustainable value for all stakeholders."

Financial Implications

The warrant issue is expected to provide the necessary capital for ATL's expansion plans. The company's management emphasized that strong internal accruals will significantly assist their growth plans, even as they continue to assess capital needs and evaluate options.

Conclusion

This strategic move by Allcargo Terminals Limited underscores the company's commitment to growth and its confidence in the future of India's logistics sector. As the country's logistics infrastructure continues to evolve, ATL's expansion plans position it to capitalize on emerging opportunities and reinforce its leading position in key logistics corridors.

Note: The warrant issue is subject to necessary regulatory and shareholder approvals.

Allcargo Terminals Limited (ATL), a key player in the logistics industry, has reported a decline in its Container Freight Station (CFS) volumes for June 2025, according to the company's latest operational update. The firm is currently undergoing a significant restructuring process, which may impact its near-term performance.

June Performance

ATL's Container Freight Station volumes stood at 48,700 TEUs (Twenty-foot Equivalent Units) for June 2025, marking a 4.5% decrease from the previous month's figure of 51,000 TEUs in May 2025. This data, confirmed by the company's monthly operational update filed with the stock exchanges, indicates a slight contraction in the company's CFS operations.

Monthly Trend

The company's CFS volumes have shown fluctuations over the past year:

The data reveals that while there has been a month-on-month decline, the volumes have remained relatively stable over the past few months, with some seasonal variations.

Ongoing Restructuring

In a significant development, Allcargo Terminals is currently undergoing a restructuring process. The company plans to separate its international and domestic businesses, a move that could reshape its operational structure and market positioning.

Upcoming Listing

As part of the restructuring initiative, Allcargo Terminals has announced that its international business is expected to be listed separately on the stock exchanges. This listing is anticipated to take place within the next 2-3 months, potentially creating new opportunities for investors and reshaping the company's market presence.

The ongoing restructuring and the upcoming separate listing of the international business may be factors influencing the company's current operational metrics. Investors and industry observers will likely be watching closely to see how these strategic moves impact Allcargo Terminals' performance in the coming months.

Allcargo Terminals continues to provide monthly operational updates in accordance with SEBI regulations, demonstrating its commitment to transparency in its communications with stakeholders.