Arshiya rose 1.23% at Rs 78.40 at 09:45 IST on BSE after the company entered into a binding term sheet with Ascendas Property Fund Trustee Pte, Singapore.
The announcement was made after market hours yesterday, 12 April 2017.Meanwhile, the BSE Sensex was down 48.15 points, or 0.16%, to 29,595.33
On BSE, so far 68,000 shares were traded in the counter, compared with an average volume of 1.16 lakh shares in the past one quarter. The stock hit a high of Rs 81 in intraday trade so far, which is 52-week high for the counter. The stock hit a low of Rs 78.40 so far during the day. The stock hit a 52-week low of Rs 16 on 13 June 2016.
The small-cap company has an equity capital of Rs 31.24 crore. Face value per share is Rs 2.
Arshiya entered into a binding term sheet with Ascendas Property Fund Trustee Pte (APFT), whereby APFT, in its capacity as Trustee-Manager of Ascendas India Trust, has agreed, subject to satisfactory duediligence, agreement on definitive documentation and obtaining necessary board approvals, to acquire 6 warehouses (totaling 8,32,000 sq.ft.) of Arshiya at its FreeTrade & Warehousing Zone (FTWZ) located at Panvel, near Mumbai.
The intended objective of Arshiya is to achieve an asset light model going forward, while Ascendas will potentially be getting a portfolio of income yielding Free Trade warehouses. The term sheet also envisages the financing of the future development on the available surplus land which has development potential of approx. 4 million sq.ft. within the existing notified area.
The indicative gross consideration envisaged is Rs 534 crore, to be paid in two tranches; Rs 434 crore upon signing of a definitive agreement and the balance Rs 100 crores to be paid over 4 years on achieving certain milestones. The majority of the monetization proceeds will be used by Arshiya for clearing a part of its dues to creditors and repayment of other liabilities post debt restructuring. All the six warehouses will be leased back under a master lease arrangement with Arshiya Group.
Arshiya has two revenue streams from its clients, one being from rent and the other from value added services in the ratio of approximately 1:1. Arshiya rental income would be significantly higher than the rental payout under the sale and lease back transaction and leave a surplus that would be retained by Arshiya. In addition, Arshiya would also benefit from the entire income from value added services.
On consolidated basis, Arshiya reported a net loss of Rs 95.01 crore in Q3 December 2016, higher than net loss of Rs 92.62 crore in Q3 December 2015. Net sales fell 6.35% to Rs 64.35 crore in Q3 December 2016 over Q3 December 2015.
Arshiya operates two Free Trade & Warehousing Zone (FTWZ) in Panvel, near Mumbai (160 acres) and at Khurja, near Delhi (325 acres), where it also operates India's largest Logistic park with unique integrated solution providing capability consisting - FTWZ, ICD, Rail & Rail Terminal and Domestic Warehousing.
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