Transport Corporation of India Limited — Important, 24-12-2024: Sale or disposal

Transport Corporation of India Limited has entered into a Slump Sale Agreement to sell its chemical logistics business to TCI Chemlog Private Limited, a wholly owned subsidiary. The chemical logistics business contributed a turnover of INR 99 Crore, approximately 2.74% of the Company’s total turnover, and a net worth of INR 45 Crore, about 2.43% of the Company's net worth.

The sale consideration is pegged at INR 45 Crore and will be settled through the issuance of equity shares from TCI Chemlog to the Company. This transaction, classified as a related party transaction, is conducted at arm's length and aims to allow focused management of the distinct risks associated with the chemical logistics business. The expected completion for this sale is within 60 days from the date of the agreement. This move could enhance operational focus for the Company, suggesting a constructive outlook for its strategic direction.