NEW DELHI:Cigarette manufacturer GTC Industries pronounced that its board of directors has considered and decided an in-principle approval to separate the tobacco and the real estate business into two different entities.
The two entities would be listed separately on the stock exchanges in India.
ET had initially reported plans of a separation of the real estate business last November.
Commenting on the progress, GTC Industries chairman Sanjay Dalmia told that the separation would unlock distinctive shareholder value across both verticals, tobacco as well as the real estate. The company is in the process of probing different options for working out a suitable scheme of separation keeping the interest of shareholders in mind.”
As reported earlier, GTC Industries had been looking forward to separate its real estate assets spread across Mumbai, Baroda and Hyderabad into a separate company.
The separated entity would then become a real estate development company while GTC would remain the cigarette manufacturer with brands like Panama and Chancellor. The separated companies would form joint ventures and develop real estate assets.