The share of this logistics company gained up to 1 percent after the company came into agreements to acquire, up to 60% of the Share Capital of ZipZap Logistics Pvt Ltd.
With a market capitalization of Rs 2,591.50 Crores. Mahindra Logistic Ltd, On Thursday, the shares closed at Rs 359.75 a share, an increase of 1 percent from the previous closing price.
In order to acquire up to 43,972 equity shares and subscribe for up to 63,200 Series A Compulsorily Convertible Cumulative Preference Shares (“CCCPS”) worth Rs 71.73 crore of ZipZap Logistics Pvt Ltd (“Whizzard”), in tranches (“Acquisition”), Mahindra Logistic Ltd. entered into a Share Purchase agreement, Share Subscription, and Shareholders’ Agreement, according to the company filing. As a result, the Company will hold up to 60% of Share Capital overall.
Apart from what was previously mentioned, the acquisition aims to strengthen the company’s position and competencies in providing last-mile delivery and fulfillment services to its clientele. A key component of the growth strategy is the expansion of technology-based last-mile services, and this transaction will hasten the addition of technology, geographic coverage, and operational capabilities.
In addition to facilitating delivery to major e-commerce players’ customers and developing India’s largest 3W EV fleet, Mahindra Logistics aims to become a Rs. 10,000 crore logistics service provider by FY 2026.
Looking into the company’s performance, Mahindra Logistic Ltd.’s revenue increased by 3 percent from Rs 1,326 Crore in Q2FY23 to Rs 1,365 Crore in Q2FY24. During the same period, net profits decreased from Rs 11 crore to a loss of Rs 16 Crore.
Mahindra Logistics Ltd is a company that offers mobility and integrated logistics solutions. The business assists a variety of industry verticals, including automotive, engineering, consumer goods, pharmaceuticals, telecommunications, commodities, and e-commerce, with supply chain expertise.
Written by:- Abhishek Singh
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