The scheme of amalgamation amongst Gateway Distriparks Ltd, Gateway East India Pvt Ltd and Gateway Rail Freight Ltd has been approved by NCLT and is effective from 28th December 2021

What’s Buzzing:

Context :

On the effective date, the various companies stand dissolved as envisaged in the scheme. The Board of Directors of company have fixed 6 January, 2022 as the record date for determining the shareholders who shall be entitled to receive shares of GRFL.

Our Perspective :

The group reorganisation is expected to result in efficient management of the subsidiaries. The scheme is also expected to derive operational synergies, cost efficiencies and improve cash flow fungibility between the various companies. GDL has a diversified presence in logistics verticals like container train operators (CTO), cold chain logistics and container freight stations. Rail segment comprises ~70% of consolidated revenues, with the rest being contributed by CFS. It has five intermodal terminals, built on owned land at key areas along WDFC. Commercialisation of DFC has led a peculiar tailwind for the business, led by higher asset turnover due to better turnaround times for the rail segment (27 hours from Gujarat based ports to NCR). It entails higher spare capacity from existing infrastructure and better return ratios