Gateway Distriparks Ltd (GDL) said on Monday its subsidiaries Gateway Rail Freight and Gateway East India have filed a joint application for amalgamation after getting approval from both the stock exchanges.
The application with National Company Law Tribunal (NCLT) was filed on March 14 to begin next step of the process after BSE Ltd (earlier known as Bombay Stock Exchange) and National Stock Exchange (NSE) of India Ltd gave approvals.
GDL had announced an amalgamation scheme between Gateway Rail Freight and Gateway East India in September 2020.
"This amalgamation will result in creating enhanced value for our shareholders due to greater operational synergies and efficiencies," said Prem Kishan Gupta, GDL's Chairman and Managing Director. "We will be able to offer our customers a wider range of locations and services in a single platform."
The merged entity will have four rail-linked inland container depots for export-import business, a domestic rail terminal in Navi Mumbai, six container freight stations spread across the country, and a combined fleet strength of 31 train sets and over 500 road trailers.
In addition, the combined cash flows will enable the merged entity to accelerate debt reduction. At the same time, it will allow the entity to continue upon expansion plans to build a wider network of rail terminals to further expand along the western dedicated freight corridor
The GDL Group is an integrated inter-modal logistics service provider operating six container freight stations in Nhava Sheva, Chennai, Vishakhapatnam, Kochi and Krishnapatnam. It is a major logistics company with three verticals: container freight stations, inland container depots with rail movement, and cold chain storage and logistics.
The group's subsidiary Gateway Rail Frieght is India's largest private intermodal operator providing rail transport service through four inland container depots at Gurgaon, Faridabad, Ludhiana, Ahmedabad and a domestic container terminal at Navi Mumbai.
( With inputs from ANI )
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