Transport Corp Plans to List TCI Developers Limited

Transport Corporation of India (TCI) will list the property development arm in 2010-11 after demerging. After getting the approval from the board and shareholders, TCI now awaits the Andhra Pradesh High Court nod for formalising the demerger.
“After we get the court nod, we will go to stock exchanges for listing TCI Developers Limited,” said Vineet Agarwal, executive director, TCI.

TCI had decided to carve out a separate entity by demerging the prime properties it has — worth Rs 50 crore — in major cities to develop them commercially.
“We could not use them for the logistics business, hence the decision for the demerger. Apart from developing existing properties, the new company will buy more land to build multi-modal logistics parks and truck terminals,” he said.

After the demerger, shareholders would receive one share in the new company for every 20 shares they hold in the parent company. While the face value of the scrip of the parent company is Rs 2, the shares of the new company would be at Rs 10 a piece.

The company, which posted a turnover of Rs 394 crore in the first quarter ended June 30, 2010, is targeted to achieve a growth rate of 15-11 per cent in turnover and 20-30 per cent in profitability for 2010-11.

In 2009-10, Transport Corporation reported a turnover of Rs 1,455 crore and net profit of Rs 44 crore.

News Published Under:   Hyderabad, Real Estate Developers, Real Estate India |

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