Shares in VRL Logistics rallied after the company notified the exchanges of the promoters plans to withdraw from the airlines business.
"In continuation of the earlier disclosure made. The same has been circulated to the Board members and shall also be placed before the Board at the ensuing Board meeting. The Promoters have stated their intention to withdraw their Regional Airline plans," the company said in a filing to the BSE.
It maybe recalled that earlier in May the company had announced a decision to foray into the airlines business.
"The board members should note that we may seek to dilute a portion of our present holding in VRL Logistics in order to provide us with liquidity to enable our investment for the aviation venture," the promoters said in the filing to BSE in may.
The worrying thing for the company that results for the quarter ending March 31, 2016 were bad. Net profits at the company almost halved to Rs 13.21 crores from Rs 24.71 crores. The company attributed the same to an increase in employee costs.