New Delhi, Jan. 9 -- Allcargo Logistics Ltd is looking to sell 25-40% stake in its subsidiary Allcargo Gati Ltd which it acquired nearly five years ago, two people aware of the development said. The company has hired investment bank Avendus to scout for investors and is looking at a valuation of $300 million for the subsidiary, the people said.

Allcargo, which acquired the then Gati Ltd in April 2020, restructured the business and raised its shareholding over a year ago, one of the two people said. "The firm is now looking to unlock value in Gati," the person said, adding the transaction is in initial stages, and will help the company expand and invest in technology.

Allcargo's stake in Gati rose marginally from 46.86% at the time of th...