Autoline Inds sizzles after entering into MoU

Autoline Industries rose 2.1% at Rs 65.55 at 10:06 IST on BSE after the company entered into Memorandum of Understanding with Poddar Habitat to transfer the land and buildings situated at Pune.

The announcement was made after market hours on 24 December 2018.

Meanwhile, the S&P BSE Sensex was down 392.51 points, or 1.11% to 35,077.64

On the BSE, 7,413 shares were traded in the counter so far, compared with average daily volumes of 4,427 shares in the past two weeks. The stock hit high of Rs 69.85 and low of Rs 65 so far during the day.

Autoline Industries said that currently the company is operating through its 8 manufacturing facilities spread across India along with in-house Design & Style Centre. In continuation of initiatives to achieve the operational efficiency, cost reduction and to reduce the debt, the company has taken one more major step by way of consolidating one of its manufacturing facility situated at Sr. Nos. 613, Mhalunge, Tal. Khed, Dist. Pune to its Chakan Units situated at Pune.

Autoline Industries has entered into Memorandum of Understanding (MOU) on 24 December 2018, with Poddar Habitat to transfer the said land and buildings thereon (immovable property). The company will utilize the sale proceeds to settle the debt that has a charge on the immovable property and reduce overall debt exposure of the company.

The company believes that the consolidation of facilities will accrue substantial operational efficiency, cost savings, add to better working capital management and smoothening of supply chain management by utilizing the available resources in Chakan Unit.

Autoline Industries is a engineering and auto ancillary company, manufacturing sheet metal components, sub-assemblies and assemblies, foot control modules, parking brakes, hinges, cab stay and cab tilt, exhaust systems, tubular structures, fabrications, etc. for large OEMs in the automobile industry.

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