VRL Logistics shares soar 20% as promoters drop airline plan

Shares of VRL Logistics surged 20 per cent today after the company's promoters stated their intention to withdraw the regional airline plans.
The stock soared 19.99 per cent to Rs 377.50 -- its upper circuit limit -- on BSE.
At NSE, it zoomed 19.94 per cent to Rs 377.
In a filing to BSE yesterday, the company said: "...There have been several developments including the announcement of the new aviation policy by the Centre. The regional connectivity related aspects listed in the said policy do not augur well with our planned business model envisaged for the proposed activity."
"As such, we have decided to drop the plans for an entry into the civil aviation space," it added.

Promoters of VRL Logistics had in May said they were planning to start a regional airline.
Post the announcement, the stock had witnessed severe drubbing amid worries over its promoters' proposed investment in regional airline venture and its impact on the firm's balance sheet.
However, VRL Logistics' promoters had said the proposed regional airline venture would be a "personal investment" of Rs 1,400 crore and would not impact the firm's balance sheet.