Gati Ltd announces a special dividend of 30% post JV formation

The Board of Directors of Gati Ltd. has announced a special dividend of 30% on a face value of Rs.2 for the financial year ended June 30, 2012. This is a special and reflects company's shareholder-friendly policies and also marks successful consummation of partnership with KWE.

Kintetsu World Express has invested Rs.267.7 crore for 30% stake in joint venture company Gati-Kintetsu Express Pvt. Ltd. This fund infusion would reduce substantially the debt of the company and consequently the interest cost of the company would be reduced by half. The current interest cost of the company is approximately Rs.50 crores. This makes GATI's balance sheet much stronger through a significant deleveraging of the debt and reduction in the interest costs upto 50%, which in turn will help in re-investment in the growth of the organization and will reflect a healty bottom line.

The Gati Ltd stock was trading at Rs.40.55, up by Rs.0.85 or 2.14%. The stock hit an intraday high of Rs.41.70 and low of Rs.40.

The total traded quantity was 1.56 lakhs compared to 2 week average of 4.13 lakhs.

Source : Equity Bulls

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