SPSL Foray into real estate business

Mumbai, Mar 30,(UNI) SPSL, a pioneer in precoated steel industry and a flagship company of Ajmera group has submitted the scheme of amalgamation with Anik Development Corporation Pvt Ltd (ADCPL), to the Mumbai 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 SPSL which has been arrived at ratio of 5 equity shares of SPSL for every 6 equity shares of ADCPL.

Commenting on the occasion, Mr Lodha, Group CFO and Strategic Advisor SPSL 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 SPSL will be Rs.5334 crore as against Rs 3457 crore pre-amalgamation. Paid up capital will go up by 4.16 crore. Equity shares and the total Equity Shares will be 11.82 crore.

Through amalgamation SPSL 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 SPSL's profit.

UNI