Allcargo bags biggest warehouse deal with Flipkart
The stock of Allcargo Logistics surged on Wednesday as the market was buzzing that the company's subsidiary has struck a mega warehouse lease deal with e-commerce player Flipkart and sports good retailer Decathlon.
Allcargo's warehousing arm, Allcargo Logistics and Industrial Parks Private Limited (ALIPPL) is developing 6.5 million sq ft of warehousing space in built-to-suit (BTS) model with an investment of about Rs. 1,000, reported a leading business daily quoting the company's management. This warehousing space will add Rs. 120 crore to the company's annual rental income. The company plans to lease out approximately 3 million sq ft of space to Flipkart and 1 million sq ft to Decathlon. Allcargo will spend approximately Rs. 450 crore to customize the space for these clients and earn close to Rs. 72 crore rent, annually.
Reacting to this development, Allcargo Logistics was up more than 4 per cent in early morning trade on Wednesday. At 11:12 hours, the stock was cooling-off at Rs. 109.00 per share, up by 1.21 per cent, while the BSE Sensex was at 36,164.72, up by 183.79 point or half a per cent.