GATI transfers 69.79% stake in subsidiary Gati Kausar to Mandala Capital; Stock soars 4%

The company stands to have reduced its debt at a consolidated level by Rs105cr.

Jul 16, 2021 11:07 IST India Infoline News Service

Gati Limited has transferred its 69.79% equity holding in Gati Kausar India Limited to Mandala Capital AG Limited on July 14, 2021, after receiving the consideration of Rs5 lakhs. With this aforementioned transfer, Gati Kausar has ceased to be the Company’s Subsidiary with effect from July 14, 2021, and also the Company stands to have reduced its debt at a consolidated level by Rs105cr, the company said in a filing on Thursday.

Earlier, the company had entered into a Share Purchase Agreement (SPA) dated May 25, 2021, as a Promoter with other contracting parties (ie) Gati Kausar, a subsidiary of the company, and Mandala Capital AG as an Investor, for the sale/disposal of 69.79% of its equity holding in Gati Kausar held by the company, in favour of Mandala Capital AG Limited.

At around 11.50 am, Gati Ltd was trading at Rs165.60 per piece up by Rs6.45 or 4.05% from its previous closing of Rs159.15 per piece on the BSE.

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