Snowman clarifies on Adani acquisition buzz

Last Updated: Thu, Nov 07, 2019 11:12 hrs
Snowman Logistics

New Delhi: Snowman Logistics on Wednesday clarified to the stock exchange that it cannot comment on any options being explored by any of its shareholders to divest their shares.

The clarification came after media reports said that Adani Ports and Special Economic Zone's logistics subsidiary was in advanced talks to buy the company.

However, Snowman said that it does not comment on market speculation.

"Further, the company cannot comment on any options being explored by any of its shareholder(s) for divesting their stake," the company said in a filing after the stock exchanges sought an explanation from the company.

A clarification has also been sought from Adani Ports, which is yet to reply.

The Snowman stock hit a 52-week high of Rs 43.20 on Wednesday and the volumes jumped by more than 4.65 times.

Though the shares jumped over 14 per cent in intra-day trade on Wednesday, it petered out towards the end of trade, with the stock closing 2.75 per cent up at Rs 39.30.

As per media reports, the parent company of Snowman Logistics, Gateway Distriparks, is exploring options to sell the loss-making firm to raise funds and reduce debt. Snowman is engaged in cold chain logistics with a pan-India presence at 31 locations in 15 cities.

Gateway Distriparks had listed Snowman Logistics in 2014 and currently owns 40.25 per cent stake in the company. According to the report, Gateway Distriparks has around Rs 600 crore debt on its books and is looking at avenues to sell the loss-making company. It has a market cap of Rs 656 crore.