VRL Logistics gains 1.3% as SBI Mutual picks up stake

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Shares of VRL Logistics gained 1.3 percent on September 11 at market open, a day after SBI Mutual Funds bought a 2.2% equity stake in the company. At open, VRL Logistics shares were trading at Rs 713.45 on the NSE. As of 11:11 am, the shares were trading lower at Rs 708.25, 0.7 percent higher from close on September 8.

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According to bulk deal data, SBI Mutual Fund picked up 19.29 lakh equity shares or 2.2% of paid-up equity in VRL Logistics, via open market transactions. The shares were bought at an average price of Rs 681 per share, totalling Rs 131.36 crore.

Anand Vijay Sankeshwar, one of the promoter entities, sold a 4-percent stake, at an average price of Rs 681.08 per share. The deal was valued at Rs 238.4 crore, bulk deal data shows.

On September 8, when the news of the deal first broke, shares of VRL Logistics fell over 4 percent. At that time, details of buyers and sellers were not available.

Also read: Ashok Leyland bags order for 1,560 trucks from VRL Logistics

Analyst view

According to analysts at Emkay Global, large organised fleet operators such as VRL have been benefitting from bulk procurement of diesel directly from refineries, which is likely to aid gross margin expansion in Q2. With the reduction in the threshold of GST e-invoicing leading to increased
cost of compliance and flat freight rates, the reports adds that they expect to see a shift towards organised, large fleet operators in road logistics in the near future.

VRL Logistics is a Karnataka-based logistics company offering a large variety of services such as courier service, priority cargo, and transport of passengers by air.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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