AVG Logistics Nets ₹ 15.2 Crore Profit from JV Investment Sale

AVG Logistics Limited, a leading multimodal logistics solutions provider, is partially liquidating its investment from existing Joint venture NDR AVG Business Park private limited which was a prime warehouse project in New Delhi.

NDR Warehousing Private Limited (NDR) is the Joint Venture Partner of AVG Logistics through a Joint venture company namely NDR-AVG Business Park Private Limited formed in the year 2018. In this JV, AVG holds 35% shareholding and NDR holds 65% shareholding.

In a significant development, AVG Logistics Limited has divested approximately 69% of its investment at the consideration of Rs. 22 Crore and cost of which was Rs. 6.78 Crore and resultantly AVG has made a profit of Rs. 15.2 Crore in Q4 FY24 from this transaction, further AVG will retain an original investment of ₹ 3.06 Crore through units in NDR InvIT Trust, currently valued at ₹ 9.95 Crore.

The proceeds from this transaction will be utilized towards (i) working capital requirements to drive further business growth, towards paying down debt resulting in decrease in interest expenses & improve profitability and general corporate purposes.

This move underscores AVG Logistics' commitment to enhancing shareholder value while strategically allocating resources to foster sustainable growth, profitability and operational excellence.

Commenting on recent update, Mr. Sanjay Gupta Managing Director & CEO, AVG Logistics Limited said, "We are pleased with the successful execution of our divestment strategy through the private placement offering facilitated by NDR InvIT Trust. The realization of a significant profit of ₹ 15.2 Crore underscores our commitment to maximizing shareholder value.

The funds generated from this transaction will be instrumental in fuelling our business growth initiatives, supporting working capital needs, and advancing our strategic objectives. We remain focused on prudent capital allocation and are confident in our ability to drive sustainable long-term value for our stakeholders."

Shares of AVG Logistics Limited was last trading in BSE at Rs. 448.00 as compared to the previous close of Rs. 449.35. The total number of shares traded during the day was 10316 in over 591 trades.

The stock hit an intraday high of Rs. 469.60 and intraday low of 446.05. The net turnover during the day was Rs. 4665950.00.

Source : Equity Bulls

Keywords

AVGLogistics INE680Z01018 StakeSale JV NDRAVGBusinessPark