MUMBAI: The Ajmera group-controlled Shree Precoated Steels, which has interests in real estate and steel, has taken a decision to hive off its steel business into a separate company. This will be a reverse merger as the Mumbai-based group had earlier merged its real estate assets with Shree Precoated Steels.

The group will rename Shree Precoated Steels as Ajmera Real Estate and Infrastructure, while the demerged entity will be known as Shree Precoated Steels, said Shree Precoated Steels CFO OP Gandhi. The group had mandated PricewaterhouseCoopers to advise it on the demerger, he told ET. The Ajmera family owns 62.5 per cent in Shree Precoated Steels, according to BSE data.
Post-demerger, Ajmera Real Estate and Infrastructure will hold the group’s five real estate projects — three in Mumbai (Wadala, Kanjur Marg and Ghatkopar) and one each in Bangalore and Bahrain. Shree Precoated Steel will continue to make colour coated galvanised steel sheets. On 16th may, the stock closed marginally down at Rs 189.20 on BSE. “The demerger will help the group give exact focus to both steel and real estate businesses,” Mr Gandhi said. The group is developing residential and commercial projects in Wadala and Kanjur Marg, while it is developing a residential project in Ghatkopar.
Mr Gandhi said the Kanjur Marg project is the biggest among its existing real estate developments. The project is being developed under a special purpose vehicle named Jolly Brothers.
The group also plans to develop a two thousand five hundred crore rupees, residential-cum hospitality-cum-commercial area in Kanjur Marg, comprising residential space of twenty six lakh sq ft and commercial space of fifty four lakh sq ft. The company intends to pump in Rs 500 crore and raise Rs 1,000 crore by way of debt.
Ajmera group has already developed 170 lakh sq ft in Mumbai, besides large format projects in Pune, Rajkot, Ahmedabad and Surat.