Ajmera to Give A Push to SPSL

March 30, 2007	(Be the first to rate this story!)  Loading ...
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Ajmera Group, a $450 million conglomerate based in Mumbai, has finalized its decision to merge its leading real estate arms with Shree Precoated Steels Ltd (SPSL), its group firm that runs the business of making color coated galvanized steel sheets.

The group has plans to consolidate its existing eight real estate projects into Shree Precoated. The shift to fold such crucial projects into its galvanized steel firm is estimated to increase the enterprise value of SPSL to over Rs 5,334 crore against Rs 3,457 crore pre-merger.

The merger of SPSL in Ajmera group will help the former to emerge as one of the pioneering property developers within India with exposure to steel business. The Shree Precoated shares have witnessed a drop in line with the general market trend.

Experts see merging the real estate business with a listed group entity reduces the lead time for the business to unlock value.  The most important part is that the steel maker has bagged the handsome investment from the foreign players like George Soros’ Quantum Fund, who made the investment of around Rs. 80 crore to pick up a 4.17% stake.

Of all the eight real estate projects with Ajmeras, the project at Kanjurmarg is the largest one that has been consolidated with Shree Precoated.

The project is on its track under the Special Purpose Vehicle (SPV) names Jolly Brothers Pvt. Ltd. The group is also drawing plans to develop a commercial space which will feature IT Towers, hotels, and an education centre. The land valuation is evaluated to be around Rs 41 crore.

There is another residential project under an SPV called Anik Development Corporation which has been merged with SPSL.

News Published Under:   Real Estate India |

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