VRL Logistics stock rallies over 3.5% after signing MoU to sell wind power undertaking

20 Apr 2022 , 09:18 AM

VRL Logistics Ltd has signed Memorandum of Understanding (MOU) on April 18, 2022 with Ratna Cements (Yadwad) Limited (RCL) for transfer of the Wind Power (Sale of Power) undertaking along with all underlying assets and liabilities as a going concern on a slump sale basis.

According to the filing, the MOU is being entered in order to initiate necessary applications to obtain the requisite transfer approvals from various Government Departments, Government agencies and enable financial arrangements from Banks / Financial Institutions for the Buyer.

The agreed upon consideration for the said Slump Sale is Rs4,800 lakh. The Buyer has placed a token advance of Rs2 crore prior to signing of this MoU and has been provided a time of upto July 31, 2022 to achieve the completion of transaction with all required approvals along with the remittance of balance sales consideration.

The Wind Power Undertaking of the Company initially comprised of 34 wind turbine generators with capacity of 42.5 MW. As of date, the said projed comprises of 32 wind turbine generators with a capacity of 40 MW. These WTG’S are installed at Kappatgudda, District Gada& Karnataka State.

The management of the Company is looking to dispose offthis undertaklng considering the limited balance life of the said machines as also to focus on its Goods Transport business which is the major business segment of the Company.

On Wednesday at around 9:21 AM, VRL Logistics was trading at Rs535 apiece up by Rs18.65 or 3.61% on the BSE.