Shree Precoated Steels Limited Foray into Real Estate Business

Shree Precoated Steels Ltd has announced that:

The Company and a flagship of Ajmera Group has submitted the scheme of amalgamation with Anik Development Corporation Pvt Ltd (ADCPL), to the Hon'ble High Court for its approval after obtaining No Objection from BSE & NSE. The consideration given to the existing shareholders of ADCPL would be through issue of 4.16 Crore Equity Shares face value of Rs 10/- of the Company which has been arrived at ratio o f5 equity shares of the Company for every 6 equity shares of ADCPL.

Commenting on the occasion Mr. Lodha, group CFO and Strategic Advisor of the Company said, "The main reason for an amalgamation is to start corporatising the real estate business of Ajmera Group and unlock the value of the same to the stake holders of the Company.

Post Amalgamation the enterprise value of the Company will be Rs 5334 Crores as against Rs 3457 Crores pre-amalgamation. Paid up capital will go up by 4.16 Crs. Equity shares and the total Equity Shares will be 11.82 Crores.

Through amalgamation of the Company will get an integration of real estate business of ADCPL. The profits derived from the Bhakti Park project at Wadala will be added in the Company's profit.

The Company is part of US$ 450 million Ajmera Group of Companies - the market leader in residential and commercial property developers. Ajmera Group has successfully completed several mega housing residential complexes to serve the needs of diverse groups of people. The group is in the process of unlocking the value of Ajmera Group really assets through the Company.

The Group will continue with its present growth plans, which includes acquisition of some of the prime land located in Central & Western suburbs and other parts of India to enhance the PAN India presence.

Source : Equity Bulls

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