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Logistics firm Transport Corporation of India (TCI) has decided to demerge the Express division and list it separately. The Express division accounts for 30 per cent of revenues and 37 per cent of net profit.
Two equity shareholders of TCI will get one equity share of TCI Express.
The Board of Directors of TCI approved a scheme of arrangement envisaging the demerger of its Express Distribution division (XPS) undertaking into wholly-owned subsidiary TCI Express Ltd, formerly known as TCI Properties (Pune) Ltd.
According to a company release, under the proposed scheme, TCI Express Ltd will issue and allot one equity share of ₹2 each for every two equity share of ₹2 each held in TCI on record date to all shareholders of TCI so as to create a mirror image of shareholding pattern in TCI Express Ltd.
As part of the scheme, TCI Express shall also seek listing on stock exchange after High Court approval.
This is subject to the requisite approvals of the shareholders and creditors of the respective companies, sanction of the High Court of Hyderabad for the Telangana and Andhra Pradesh, stock exchanges, SEBI or such competent authority and other necessary statutory approvals.
The Board also announced de-layering of its global holding structure by liquidation of its wholly-owned subsidiary TCI Global Holding (Mauritius) Ltd and consequent capital reduction under the said scheme.
The company said, “with a clear objective to capitalise on the fast growing e-commerce and high value express business, we believe that the restructuring will create a focused entity with the right operational flexibility to create prospective for hyper growth. The demerged entity will provide shareholders a unique opportunity to participate in the growth of a well established express company; with a strong customer base, trained professional employees and a modern national infrastructure of hubs, trucks and delivery vans.”
The company’s shares closed at ₹297, up 19 per cent over the previous day’s close on the BSE.
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