Transport Corporation set to demerge realty business

Transport Corp of India, the Delhi-based logistics solutions provider, expects to demerge its real estate business in the next six months, once it gets the high court nod, executive director Vineet Agarwal said.

“We have already got the regulatory approval from Securities and Exchange Board of India for the real estate operations. Now we have moved to the high court as per the company law rules, following which the company will be demerged and listed. This should take another six months,” Agarwal said.

The board of directors of the company had approved the demerger of its real estate operations in March.

Transport Corp shareholders will get one share of the new real estate company for every 20 held.

The face value of the share will be Rs 10.

Transport Corp’s new arm will focus on development of new projects, such as residential and commercial complexes. The company currently has real estate properties in metropolitan and tier-II cities.

The new company will also develop logistics parks and free trade warehousing zones.

“We have already started looking for land acquisitions for the warehouses. The possibility of starting these warehouses will depend on the demerger approval,” Agarwal said adding Transport Corp has warehousing space to the tune of 8 million square feet. Agarwal said the company expects to garner around Rs 250 crore from the real estate business over the next five years.
NW18