MUMBAI: In a significant strategic move, the Ajmera Group-controlled Shree Precoated Steels has opted to separate its steel division into an independent entity. This action represents a reverse merger, as just prior, the Mumbai-based group had merged its real estate assets with Shree Precoated Steels itself.
Following this change, the firm will undergo a renaming process, becoming Ajmera Real Estate and Infrastructure, while the newly demerged entity will continue its operations under the name Shree Precoated Steels, as confirmed by Shree Precoated Steels CFO, OP Gandhi. PricewaterhouseCoopers has been engaged to provide advisory services throughout this demerger process, he further shared with ET. Data from BSE indicates that the Ajmera family holds a substantial 62.5 percent ownership stake in Shree Precoated Steels.
Upon completion of the demerger, Ajmera Real Estate and Infrastructure will oversee five ongoing real estate projects—three located in Mumbai (specifically in Wadala, Kanjur Marg, and Ghatkopar) and one each in Bangalore and Bahrain. Meanwhile, Shree Precoated Steels will persist in producing color-coated galvanized steel sheets. As of May 16th, the company's stock traded slightly lower at Rs 189.20 on the BSE.
“The demerger will enable the group to sharpen its focus on both the steel and real estate sectors,” Mr. Gandhi articulated. The Ajmera Group is also actively developing a combination of residential and commercial projects in the Wadala and Kanjur Marg areas, with plans in place for a dedicated residential project in Ghatkopar.
Highlighting its scale, Mr. Gandhi noted that the Kanjur Marg undertaking is presently the largest within the group's existing real estate ventures, being executed through a specialized purpose vehicle named Jolly Brothers. Moreover, the group has outlined intentions to establish a multi-faceted project in Kanjur Marg valued at Rs 2,500 crore. This extensive development will comprise a residential area measuring a substantial 26 lakh square feet alongside 54 lakh square feet designated for commercial uses. The broader scheme entails an investment of Rs 500 crore, coupled with plans to secure Rs 1,000 crore through debt financing.
The Ajmera Group has an impressive track record, having already developed 170 lakh square feet in Mumbai, in addition to large-scale projects located in Pune, Rajkot, Ahmedabad, and Surat.