TRF slides after after after Canyon Point terminates SPA

TRF fell 4.33% to Rs 104 after Canyon Point Investment Holdings Pte terminated a share purchase agreement.

On 17 May 2019, the company had informed the sale/divestment of the entire shareholding in step down subsidiary Dutch Lanka Trailer Manufacturers (DLT), including its subsidiary Dutch Lanka Engineering and 50% stake in Tata International DLT (TIDLT), a joint venture company between DLT and Tata International to Canyon Point Investment Holdings (Canyon) vide share purchase agreement (SPA) dated 17 May 2019.

The firm said that Canyon has vide its letter dated 16 September 2019, expressed its inability to complete the transactions as per SPA dated 17 May 2019 citing occurrence of 'material adverse changes' and has terminated the said SPA with immediate effect.

TRF further added that it has noted and is evaluating Canyon's letter. The company reserves all its rights and remedies under the SPA/contract, law and equity against Canyon, including its right to respond and deal with Canyon's letter.

Meanwhile, the S&P BSE Sensex was down 258 points or 0.69% to 36865.71.

On the BSE, 6329 shares were traded in the counter so far compared with average daily volumes of 6926 shares in the past one quarter. The stock hit a high of Rs 110.05 and a low of Rs 104.9 so far during the day.

The stock hit a 52-week high of Rs 204 on 17 Sep 2018. The stock hit a 52-week low of Rs 70.55 on 23 Aug 2019.

On a consolidated basis, TRF reported a net loss of Rs 3.07 crore in Q1 June 2019 over a net profit of Rs 56.59 crore in Q1 June 2018. Net sales rose 1.4% to Rs 69.06 crore in Q1 June 2019 over Q1 June 2018.

TRF offers solutions for material handling equipment and processing systems required in the infrastructure development. The company undertakes turnkey projects for infrastructure development industries such as power and steel plants, cement, ports and mining projects.

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