Autoline Industries spikes 9% on Pune land sale to reduce debt

Autoline Industries shares rallied 8.8 percent intraday Wednesday after the company decided to sell land & building in Chakan unit in Pune to reduce debt burden.

“To achieve the operational efficiency, cost reduction and reduce the debt, the company has taken one more major step by way of consolidating one of its manufacturing facility situated at Mhalunge, Pune to its Chakan units situated at Pune,” the auto ancillary company said in its filing.

Accordingly, the company has entered into Memorandum of Understanding (MOU) with Poddar Habitat Pvt Ltd to transfer the said land and buildings thereon.

Autoline said it would utilise the sale proceeds to settle the debt that has a charge on the above said immovable property and reduce overall debt exposure of the company.

The company believes that the consolidation of facilities will accrue substantial operational efficiency, cost savings, add to better working capital management and smoothening of supply chain management by utilizing the available resources in Chakan Unit.

Currently Autoline is operating through its 8 manufacturing facilities spread across India along with in-house design & style centre.

At 10:32 hours IST, the stock was quoting at Rs 66.00, up Rs 1.80, or 2.80 percent on the BSE.

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