VRL Logistics rallies after signing MoU to sell wind power undertaking

VRL Logistics added 5.55% to Rs 545 after the company signed Memorandum of Understanding (MoU) with Ratna Cements for transfer of the Wind Power (Sale of Power) on a slump sale basis.

As part of the MoU, VRL will transfer the Wind Power (Sale of Power) undertaking along with all underlying assets and liabilities as a going concern on a slump sale basis for a consideration of Rs 48 crore.

Ratna Cements is a public limited company engaged in manufacturing of clinker cement. The company (buyer) placed a token advance of Rs 2 crore prior to signing of MoU and has been provided a time of up to 31 July 2022 to achieve the completion of transaction with all required approvals along with the remittance of balance sales consideration, VRL said in an exchange filing.

The Wind Power Undertaking of the company initially comprised of 34 wind turbine generators with capacity of 42.5 MW. As of date, the said project comprises of 32 wind turbine generators with a capacity of 40 MW. These turbines are installed at Kappatgudda, in Karnataka.

The windmill division recorded revenue of Rs 17.57 crore (0.99% of the standalone revenue of the company, with an EBIT of Rs 80.83 lakhs).

VRL Logistics is largest and leading transportation and logistics company in India. The company's net profit rose 52.2 % to Rs 60.49 crore on 20.4 % increase in net sales to Rs 678.39 crore in Q3 FY22 over Q3 FY21.

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