VRL Logistics shares hit lower circuit in the early trade on Tuesday after the promoters of the company on Monday said they plan to start a regional airline. VRL Logistics on Monday also reported 31.78 per cent decline in its net profit to Rs 13.21 crore for the March quarter of the last fiscal as against Rs 19.36 crore in the year-ago period.
Shares of VRL Logistics plunged 20 per cent to Rs 315.10. However, benchmark index BSE Sensex was trading 15 points or 0.06 per cent down at 25,215.32 in the early trade.
The chairman of the transport and logistics firm Vijay Sankeshwar alongwith managing director Anand Sankeshwar expressed their intent to enter the new business activity in a letter to the Board of Directors.
“We are currently proposing to enter the civil aviation industry by incorporating a separate company to undertake the business of a regional airline. We have taken this in principle decision after a lot of study and inputs from industry experts,” both the promoters said in a letter to the Board of Directors of the company.
On financing, the letter said, “We are also internally deliberating on the method of financing of this venture. The board members should note that we may seek to dilute a portion of our present day holding in VRL Logistic Ltd in order to provide us with liquidity to enable our investment for the aviation venture.”
At the same time the promoters assured the board that such dilution will be in accordance with the applicable laws while they will continue to hold a majority stake in the company.
(With inputs from PTI)