VRL Logistics shares crashed 20 per cent on Tuesday, following its promoters' decision to start a regional airline in their personal capacity.
VRL Logistics promoters - Vijay Sankeshwar and Anand Sankeshwar - on Monday said they plan to incorporate a separate company to start a regional airline for which they would sell a minority stake in VRL Logistics.
"The board members should note that we may seek to dilute a portion of our present holding in VRL Logistics in order to provide us with liquidity to enable our investment for the aviation venture," the promoters said in the filing to BSE.
VRL Logistics' promoters' decision to foray into airline space did not go down well with both investors and analysts.
Fund manager Sandip Sabharwal said, "VRL Logistics latest fancied stock to bite the dust. Promoters announce foray into Aviation with "small" amount of Rs 1,400 crore."
VRL Logistics; latest fancied stock to bite the dust.
Promoters announce foray into Aviation with "Small" amount of Rs 1400 Cr.Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
