HC allows TCI to demerge its real estate division

Transport Corporation of India Limited (TCI), India?s leading integrated supply chain and logistics solutions provider, has received approval from the High Court of Andhra Pradesh for demerging its Real Estate & Warehousing undertaking into a new company, TCI Developers Limited (TDL).

The demerger process started on March 17, wherein TCI Board of Directors gave their approval to initiate the same, said TCI on Tuesday.

This move will inter-alia result to concentrate & focus on the core activity of each company.

Steps are now being taken to fix Record Date in consultation with Stock Exchanges to ascertain the entitlement of TCI Shareholders to get shares in the Transferee Company i.e. TDL.

Accordingly, every shareholder holding 20 equity shares of Rs 2 each in TCI will get one equity share of Rs 10 each in TDL.

TDL would soon approach the Stock Exchanges to get the new shares listed.

Vineet Agarwal, Executive Director, TCI said, ?With the newly formed company TDL, we will develop the company?s existing real estate into commercial ventures. With the new entity, the management will raise adequate funds for TDL?s development plans. We will also undertake development of large scale logistics infrastructure projects like multi-modal logistics parks, truck terminals, free trade warehousing zones etc.?

The book value of the undertaking being demerged comprising properties and investment amounts to approximately Rs. 50 crores. Post demerger, shareholding pattern of TDL (currently a 100% subsidiary of TCI) will be a mirror image of TCI.