Arshiya Limited updates on demerger

The Demerger of Arshiya Limited has been a keenly awaited step in the long-planned restructuring of the Group.

The resulting demerger will split the group into two mirror listed entities:

- the asset light, high margin, high growth potential Free Trade Warehousing Zone (FTWZ) business housed under Arshiya Limited (including Arshiya Northern FTWZ Limited / Khurja FTWZ) which accounts for over 90% of EBITDA;

- the other a lower growth, higher capital employed business housed under Arshiya Rail Infrastructure Limited (the resulting entity) which accounts for less than 10% of EBITDA.

The debt will be split near equally between the two listed entities. With growth funding for warehouse construction readily available through the partnership with CapitaLand, and proceeds of ongoing sale and leaseback of constructed warehouses used to repay outstanding debts, Arshiya Limited will move to an envisaged debt free status in a few years.

Under the current scheme, the listed company, Arshiya Limited, which has the Free Trade Zone business will continue to stay listed, and ARIL (the demerged RAIL + ICD business) will list separately in due course. The demerged balance sheet will be announced in the forthcoming Quarter 3 results.

Shares of Arshiya Limited was last trading in BSE at Rs. 37.55 as compared to the previous close of Rs. 35.80. The total number of shares traded during the day was 1645360 in over 2096 trades.

The stock hit an intraday high of Rs. 37.55 and intraday low of 36.00. The net turnover during the day was Rs. 61751584.00.

Source : Equity Bulls

Keywords

Arshiya INE968D01022 Demerger FTWZ RailInfrastructure