Transindia Real Estate jumps over 12% on signing a definitive agreement to divest logistics park

On Thursday, Transindia Real Estate shares surged 12.71% to trade at Rs 58.70, from its previous closing of Rs 52.08 on the BSE.

About the divestment

According to demerger, Transindia Real Estate Ltd, resulting company of Allcargo Logistics Ltd, has signed a definitive agreement to sell its logistics park at Jhajjar in Haryana at an enterprise value of approximately Rs 636.71 crore. The deal consummation will help Transindia Real Estate Limited (TREL) realize substantial value from this divestment and continue to have zero debt.

Additionally, the Company has also divested its 10% stake held in Malur Logistics & Industrial Parks Private Limited, Venkatapura Logistics & Industrial Parks Private Limited, Kalina Warehousing Private Limited, Panvel Warehousing Private Limited, and Allcargo Logistics & Industrial Park Private Limited, for an equity consideration of near Rs 4.55 crore.

As a result of this divestment, Transindia Real Estate Limited, will receive over Rs 433.37 crore as cash proceeds. The company will deploy the capital to fuel its growth plans and expand its operations in various locations. The deal will also boost the company’s financial capabilities, paving the way for fresh investments in emerging business growth opportunities.

Company profile

Transindia Real Estate Ltd (formerly known as Transindia Realty & Logistics Parks Ltd) is the real estate company demerged from Allcargo Logistics Ltd. The company is engaged in the development and leasing of industrial and logistics parks, and commercial space and holds other real estate assets.

Stock price movement

Today, the stock of TransIndia Real Estate opened at Rs 51.81 and has touched a high and low of Rs 58.70 and Rs 50.85 respectively. The BSE group ‘B’ stock of face value Rs 2 has a 52-week high and low of Rs 59.89 and Rs 27.60, respectively. Last one week high and low of the scrip stood at Rs 58.70 and Rs 50.85 respectively. The current market cap of the company is Rs 1,361.15 crore.

The promoters holding in the company stood at 69.91%, while Institutions and Non-Institutions held 8.99% and 21.09%, respectively.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.