India’s leading integrated supply chain and logistics solutions provider Transport Corporation of India Ltd announced on Wednesday that its board has approved the demerger of its real estate & warehousing undertaking into a new company named TCI Developers Limited (TDL) which will be effective from April 1.
The company emailed a press statement saying the demerged entity would have properties and investments with a book value of 50 cr rupees. The company has Real Estate properties in metropolitan cities including Delhi, Chennai, Pune, Nagpur, Bangalore, Ahmadabad and many more.
The management said it believes that TCI’s Real Estate & Warehousing undertaking has the potential to develop the company’s existing real estate into commercial ventures and create a focused entity to develop large scale logistics infrastructure projects like multi-modal logistics parks, truck terminals, free trade warehousing zones etc.
By the creation of a separate entity, the management intends to provide strategic direction and raise adequate funds for its development plans on the strength of its future profitability and growth. After the demerger, shareholders of TCI will get one equity share of 10 rupee face value in the transferee company, TCI Developers Ltd, against every 20 equity shares of 2 rupee face value.
The company’s Executive Director Vineet Agarwal was quoted in the press statement, “Investment in real estate & warehousing is more capital intensive and yields return over a longer period of time in comparison to the services model of the logistics business. Going forward, on a long term basis we would look at raising funds from strategic investors and financial institution”.
