Gati managing director Mahendra Kumar Agarwal has stepped down from the position of director, MD and key managerial personnel, according to the express logistics and supply chain solutions firm.
His resignation, effective September 28, came ahead of an extraordinary general meeting (EGM) called at the request of Allcargo Logistics for his removal as director and MD. Allcargo holds almost 47% stake in the Hyderabad-based company.
His resignation follows the share purchase agreement entered into by Mr. Agarwal and two other promoter group members with Allcargo Logistics in December, Gati informed stock exchanges on Monday evening. The EGM for the removal of Mr. Agarwal as director and MD, scheduled for September 30, “has become infructuous” and the board decided to cancel it, the firm said. In July, announcing the appointment of Allcargo CMD Shashi Kiran Shetty as Gati chairman, a release said Allcargo had acquired 46.83% in Gati for ₹416 crore in April. On Tuesday, Gati shares rose 14.7% to ₹56.90 apiece.