VRL Logistics extends Tuesday's slide

VRL Logistics slumped 7.68% to Rs 290.90 at 11:11 IST on BSE, extending Tuesday's slide triggered by the announcement that the company's promoters may dilute a portion of their stake in the company to fund their proposed airline venture.

Meanwhile, the S&P BSE Sensex was up 385.33 points or 1.52% at 25,690.80.

On BSE, so far 19.05 lakh shares were traded in the counter as against average daily volume of 21,925 shares in the past one quarter. The stock hit a low of Rs 253 so far during the day, which is a 52-week low for the counter. The stock hit a high of Rs 291 so far during the day. The stock had hit a record high of Rs 478.70 on 1 September 2015. The stock had underperformed the market over the past one month till 24 May 2016, sliding 22.63% compared with Sensex's 2.06% fall. The scrip had also underperformed the market in past one quarter, advancing 2.66% as against Sensex's 9.6% rise.

The small-cap company has equity capital of Rs 91.24 crore. Face value per share is Rs 10.

Shares of VRL Logistics have tanked 26.13% in two trading sessions from its close of Rs 393.85 on 23 May 2016, after the company after market hours on 23 May 2016 said its promoters may dilute a portion of their stake in the company to fund their proposed airline venture. The stock had tumbled by its maximum permissible level of 20% to settle at Rs 315.10 yesterday, 24 May 2016.

VRL Logistics said that promoters Vijay Sankeshwar and Anand Sankeshwar informed the board of directors of the company that they are currently proposing to enter the civil aviation industry by incorporating a separate company to undertake the business of a regional airline. The promoters said that they have taken this in-principle decision after a lot of study and inputs from industry experts. They intend to promote this new airline and induct a professional management to manage the day to day operations and grow this business, the statement said. The promoters have assured the company's board that they will continue to hold a majority stake in the company. Vijay Sankeshwar and Anand Sankeshwar held 34.84% and 34.27% stake respectively in VRL Logistics as on 31 March 2016.

VRL Logistics' net profit declined 31.8% to Rs 13.21 crore on 4.5% growth in net sales to Rs 411.92 crore in Q4 March 2016 over Q4 March 2015.

VRL Logistics is one of the leading pan-India surface logistics and parcel delivery service providers.

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