Gateway Distriparks, Snowman Logistics rise up to 7% on stake sale

NEW DELHI: Shares of Gateway Distriparks and Snowman Logistics gained up to 6 per cent in Monday’s trade after the former entered into a share purchase agreement to sell its entire stake of 40.25 per cent in the latter to Adani Logistics for a consideration of Rs 295.92 crore.

Adani Ports, which is Adani Logistics’ parent firm, added 2 per cent to its share price.

Gateway Distriparks said that the transaction will be completed on or before March 31, 2020.


Snowman is the largest cold chain provider in India and provides integrated temperature-controlled warehousing transportation and distribution services.

Following the development, shares of Gateway Distriparks surged 14.4 per cent to hit a high of Rs 125.65. Snowman Logistics soared 7.38 per cent to hit a high of Rs 45.80.

Prem Kishan Gupta, Chairman and Managing Director of Gateway, said “Gateway Distriparks will be focusing its activities in the container logistics business and will use the net proceeds from this sale towards the reduction of debt.”

Adani Ports closed 0.56 per cent higher at Rs 365.70 on BSE.

Adani Logistics will also make an open offer for a maximum of 26 per cent of the public shareholding in the company as per the Substantial Acquisition of Shares and Takeover Guidelines, 2011.

Snowman Logistics owns 293 refrigerated vehicles, or reefers, and 31 temperature-controlled warehouses at 15 locations across the country. It has a total warehousing capacity of 1,04,343 pallets. The company incurred a net loss of about Rs 10.4 crore during the first half of the ongoing financial year.