NEW DELHI: Vedanta’s board has approved a draft scheme of arrangement to demerge its real estate business into Vedanta Property Platforms, the company said in a BSE filing.
The proposed demerger will be undertaken on a going concern basis and is aimed at unlocking value from Vedanta’s surplus real estate assets across India.
The demerger is planned as a vertical split. For every 20 shares held in Vedanta, shareholders will receive one share of Vedanta Property Platforms.
The surplus real estate portfolio proposed to be demerged comprises about 2,200 acres of industrial land and about 55,000 sq ft of residential and commercial properties, the company said.
According to the company’s presentation, the portfolio includes 22 assets across India, comprising about 2,264 acres of land across 14 land parcels and about 53,185 sq ft of residential and office space across eight units.
The portfolio includes land parcels and built-up assets across Gujarat, Maharashtra, Goa, Karnataka and Tamil Nadu.
Maharashtra has three land parcels, one building and five flats, including assets in Mumbai, Lonavala, Sanaswadi in Pune and Ratnagiri. Goa has five assets, including land parcels in Sanquelim and Chicalim and bungalows in Panjim.
Tamil Nadu has six land parcels across Mettur, Yercaud, Pooval and Tuticorin. The portfolio also includes one land parcel each in Gujarat and Karnataka.
Vedanta said the demerger will enable focused management, better transparency and more productive deployment of the real estate portfolio.
Vedanta said the real estate platform will focus on development, construction, redevelopment, operation, management, leasing and licensing of land, buildings and immovable properties, including residential, commercial, retail, industrial, hospitality, mixed-use and infrastructure-related developments.
