AVG Logistics witnessed a 4.79 percent surge on the NSE, trading at INR 470 as of 11:13 am on Monday, attributed to the partial liquidation of its investment in the joint venture, NDR AVG Business Park.
AVG Logistics experienced a notable surge of 4.79 percent on the NSE, trading at INR 470 as of 11:13 am on Monday. The uptick is linked to the company’s strategic move of partially liquidating its investment in the existing joint venture (JV) NDR AVG Business Park.
The joint venture partner, NDR Warehousing (NDR), collaborated with AVG Logistics through NDR-AVG Business Park, established in 2018, with AVG holding a 35 percent share, and NDR holding 65 percent. AVG Logistics has successfully divested approximately 69 percent of its investment, amounting to INR 22 crore. The company will retain an original investment of INR 3.06 crore through units in NDR InvIT Trust, presently valued at INR 9.95 crore.
Sanjay Gupta, Managing Director and CEO of AVG Logistics, expressed satisfaction with the divestment strategy’s successful execution, emphasising the realisation of a significant profit of INR 15.2 crore. The proceeds from the transaction will be allocated towards working capital requirements, debt reduction, and general corporate purposes. Gupta affirmed the commitment to maximising shareholder value and highlighted the funds’ instrumental role in fueling business growth initiatives and supporting strategic objectives.
The company’s stock achieved a 52-week high on February 15, 2024, reaching INR 477.55 on the NSE. The divestment strategy underscores AVG Logistics’ focus on prudent capital allocation, fostering long-term sustainable value for stakeholders.
