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Business News/ Market / Stock-market-news/  VRL Logistics stock extends downtrend, closes nearly 13% lower
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VRL Logistics stock extends downtrend, closes nearly 13% lower

Shares of VRL Logistics hit 52-week low, before closing nearly 13% lower amid worries over its promoters'-proposed investment in regional airline venture and its impact on balance sheet

Shares of VRL Logistics fell for the second consecutive session on Wednesday. On the volume front, 27.39 lakh shares of the company were traded at BSE and over one crore shares changed hands at NSE during the day. Photo: Hemant Mishra/MintPremium
Shares of VRL Logistics fell for the second consecutive session on Wednesday. On the volume front, 27.39 lakh shares of the company were traded at BSE and over one crore shares changed hands at NSE during the day. Photo: Hemant Mishra/Mint

Mumbai: Continuing its downtrend for the second straight session on Wednesday, shares of VRL Logistics Ltd ended the day nearly 13% lower amid worries over its promoters’-proposed investment in regional airline venture and its impact on the firm’s balance sheet.

After falling sharply by 19.7% to 253—its 52-week low—intra-day on BSE, the stock finally closed at 275.45, down 12.58%. On NSE, shares of the company tumbled 12.24% to close at 276.20.

On the volume front, 27.39 lakh shares of the company were traded at BSE and over one crore shares changed hands at NSE during the day.

VRL Logistics’ promoters said on Tuesday that the proposed regional airline venture would be a “personal investment" of 1,400 crore and would not impact the firm’s balance sheet.

In a release, the company’s chairman Vijay Sankeshwar also emphasized that he would primarily play the role of a financial sponsor for the planned airline business. The clarification came against the backdrop of shares of VRL Logistics tumbling 18% to close at 315.10 on BSE on Tuesday.

The company’s market valuation fell by 1,079.7 crore to 2,513.30 crore in two days. “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," Sankeshwar said in a release submitted by the company to the stock exchanges.

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Published: 25 May 2016, 05:54 PM IST
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