After hitting lower circuit on Tuesday, VRL Logistics shares plunged as much as 19.7 per cent in Wednesday trade. The scrip has been under pressure after promoters of the company proposed investment in regional airline venture and its impact on the company’s balance sheet.
However, the company’s promoter Vijay Sankeshwar on Wednesday after market hours said, “I wish to clarify that the proposed entry into airline business is a personal investment and at no point do we anticipate VRL’s balance sheet being used for the venture.”
At 1.20 pm, shares of VRL Logistics were trading 9.03 per cent down at Rs 286.65. The scrip opened the day at Rs 260 and has touched a high and low of Rs 291 and Rs 253, respectively, in trade so far. Later, the scrip closed 12.58 per cent down at Rs 275.45.
Sankeshwar further said, “Our preliminary estimates suggest the total investment in the airline business is around Rs 1,400 crore over next 3-4 years of which my equity will be Rs 400 crore and further Rs 1,000 crore will be debt to fund the regional airline business.”
The clarification came after shares of VRL Logistics hit lower circuit and tumbled 20 per cent on BSE on Tuesday.