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AVG Logistics stock has surged by 4.79 per cent on the NSE, trading at ₹470 as of 11.13 am on Monday. The company is partially liquidating its investment from existing joint venture (JV) NDR AVG Business Park Pvt Ltd.
NDR Warehousing Pvt Ltd (NDR) is the joint venture partner of AVG Logistics through a joint venture company, NDR-AVG Business Park Pvt Ltd, which was formed in 2018. AVG holds 35 per cent shareholding and NDR holds 65 per cent shareholding in this JV.
As per the company’s statement, AVG Logistics has divested approximately 69 per cent of its investment for a consideration of ₹22 crore. 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 the transaction will be utilised for working capital requirements, paying down debt and general corporate purposes.
Sanjay Gupta, Managing Director and CEO of AVG Logistics Ltd said, “We are pleased with the successful execution of our divestment strategy through the private placement offering facilitated by NDR InvIT Trust. The realisation of a significant profit of ₹15.2 crore underscores our commitment to maximising 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.”
The company’s stock had hit a 52-week high on February 15, 2024, at ₹477.55 on the NSE.
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