Velox Shipping and Logistics Limited has signed an agreement to acquire a 98% stake in Consolidated Container Shipping Line LLC Dubai (CCSL Dubai) for ₹5.00 crores, marking a significant step in the company's international expansion strategy. The acquisition was disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Transaction Overview

The cash transaction involves the purchase of 98% equity stake in CCSL Dubai, a logistics company based in the United Arab Emirates. The acquisition is designed to help Velox Shipping and Logistics expand and establish its business operations in international markets.

Target Company Profile

CCSL Dubai operates in the logistics sector, providing comprehensive shipping and cargo services. The company is engaged in multiple service areas including cargo packaging, sea cargo services, sea shipping line agency services, and container loading and unloading services, along with other freight and logistics-related activities.

Financial Performance

The target company's financial performance over the last three years shows varying revenue levels:

The company has an equity value of AED 1,00,000.00 and maintains its presence in the United Arab Emirates market.

Strategic Rationale

The acquisition aligns with Velox Shipping and Logistics Limited's objective of expanding its footprint in international markets. By acquiring CCSL Dubai, the company gains access to established logistics operations in the UAE, a strategic location for Middle Eastern and international trade routes.

The transaction does not fall within related party transactions, and no governmental or regulatory approvals are required for the completion of this acquisition. The company expects to complete all procedural requirements and finalize the transaction within the specified timeframe of December 2026.

Velox Shipping and Logistics Limited has announced significant corporate restructuring initiatives, including an increase in authorized share capital and a preferential warrant issue. The company's board of directors approved these measures in a recent meeting, setting the stage for potential growth and expansion.

Key Corporate Actions

Authorized Share Capital Increase

The board has approved increasing the company's authorized share capital from Rs. 13.00 crore to Rs. 40.00 crore. This substantial increase of over 200% suggests that Velox Shipping and Logistics is preparing for significant expansion or capital-raising activities.

Preferential Warrant Issue

The company plans to issue up to 2,83,33,333 convertible warrants at Rs. 12.00 each to 35 investors through a preferential allotment. This move could potentially raise up to Rs. 34.00 crore, providing the company with additional capital for its operations or expansion plans.

Adoption of New Articles of Association

Velox Shipping and Logistics has also adopted new Articles of Association, which typically involves updating the company's internal rules and regulations to align with current laws and best governance practices.

Details of the Preferential Warrant Issue

Next Steps

The company has scheduled an Extra-Ordinary General Meeting (EGM) for January 8, 2026, to seek shareholder approval for these corporate restructuring initiatives. This meeting will be crucial for the company to move forward with its plans.

Implications

These corporate actions suggest that Velox Shipping and Logistics is positioning itself for potential growth or significant changes in its capital structure. The increase in authorized share capital provides the company with the flexibility to issue more shares in the future, while the preferential warrant issue could bring in substantial funds for the company's operations or expansion plans.

Investors and stakeholders may want to closely monitor the outcomes of the upcoming EGM and any subsequent announcements from the company regarding the utilization of the additional capital and the implementation of these corporate restructuring initiatives.