Anant Raj Ltd shares hit upper circuit of 20 per cent on Wednesday after it informed bourses that the company has approved the demerger of project and real estate division on Tuesday.
At 2.14, shares of the company soared 19.98 per cent to Rs 56.45 and breached the upper circuit limit.
In a BSE filing, the company said, “The composite scheme of arrangement comprising of demerger of real estate division of Anant Raj Agencies into Tauras Promoter and Developers and subsequent amalgamation of Remaining ARAPL with the company and demerger of project division of the company into Anant Raj Global Limited (ARGL) and subsequent listing of ARGL at BSE and NSE.”
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The above provisions of the scheme shall be effected in accordance with the provisions of Section 391 -394 of the Companies Act, 1956 or the corresponding provisions of the Companies Act, 2013.
According to the filing, the above scheme of arrangement shall be subject to the approval of High Court, Shareholders and Creditors of all the Companies. The Listing of ARGL is subject to exemption from Sebi in terms of Rule 19(2)(b) of Securities Contract (Regulations) Rules, 1957.
For the year ended March 31, 2016, Anant Raj reported a consolidatede net profit of Rs 64.19 crore, down 54.92 per cent, against Rs 142.38 crore in the corresponding quarter a year ago.