Sical Logistics has completed the sale of non-core assets located in Tamil Nadu to Wisteria Towers Private Limited for ₹33.09 crore. This strategic divestment was executed in accordance with the company's resolution plan approved under the Insolvency and Bankruptcy Code.

Transaction Details

The asset sale was completed, with Wisteria Towers Private Limited as the buyer. The transaction represents a significant milestone in Sical Logistics' restructuring process following its resolution plan approval.

Buyer Information

Wisteria Towers Private Limited is a private limited company. The company's registered office is located in Chennai, Tamil Nadu.

Regulatory Compliance

The sale aligns with the resolution plan submitted by Pristine Malwa Logistics Park Private Limited, which was approved by the National Company Law Tribunal, Chennai bench, under Section 31 of the Insolvency and Bankruptcy Code, 2016. The tribunal's approval was granted through its order dated December 08, 2022.

The transaction does not fall within related party transactions, as the buyer does not belong to the promoter, promoter group, or group companies of Sical Logistics. The disclosure has been made under Regulation 30 of the listing regulations in compliance with SEBI requirements.

Strategic Impact

This asset divestment represents a crucial step in Sical Logistics' restructuring process under the approved resolution plan. The ₹33.09 crore proceeds provide the company with additional financial resources to strengthen its operational capabilities and focus on core logistics activities. The transaction demonstrates progress in the company's efforts to optimize its asset portfolio and improve its financial position following the resolution process.

Sical Logistics Limited , a prominent player in the integrated logistics services sector, has recently issued a postal ballot notice seeking shareholder approval for two significant corporate actions. These actions involve the re-appointment of a key executive and modifications to an existing related party transaction.

Director Re-appointment

The company is seeking approval to re-appoint Mr. Seshadri Rajappan as a whole-time director for an additional three-year term, from January 2026 to January 2029. The proposed remuneration for Mr. Rajappan is set at up to Rs. 74 lakh per annum.

Key Details of the Re-appointment:

Modification of Related Party Transaction

Sical Logistics is also seeking approval to modify an existing material related party transaction with its holding company, Pristine Malwa Logistics Park Private Limited. The proposed changes are as follows:

1. Reduction in Leased Equipment: The number of leased commercial equipment units will be reduced from 59 to 38.

2. Revised Lease Rent: The lease rent will be adjusted for the next three financial years as follows:

Financial Context

To provide context for these corporate actions, let's examine some key financial metrics from Sical Logistics' recent consolidated balance sheet:

The company's balance sheet shows a mixed financial picture. While total assets have grown by 11.99% year-over-year, there's been a significant increase in current liabilities (56.42%) and a decrease in total equity (-16.71%). This financial context underscores the importance of the proposed corporate actions, which may be aimed at optimizing operations and improving the company's financial position.

Implications for Shareholders

1. Leadership Continuity: The proposed re-appointment of Mr. Seshadri Rajappan suggests that the board values his leadership and wants to ensure continuity in the company's executive team.

2. Cost Optimization: The reduction in leased equipment and revised lease rent structure with the holding company could be seen as a move towards cost optimization, potentially improving the company's operational efficiency.

3. Financial Prudence: Given the increase in liabilities and decrease in equity, these actions may be part of a broader strategy to strengthen the company's financial position.

Shareholders will need to carefully consider these proposals and their potential impact on the company's future performance when casting their votes in the postal ballot.