Transport Corporation of India surges as board approves demerger plan

The equity shareholders of TCI shall receive 1 equity share TCI Express for every 2 equity shares held on the Record Date in the company.

Shares of Transport Corporation of India (TCI) surged 18% to Rs 293 on the BSE in early morning trade after the company announced that the board approved the scheme of arrangement between the company and its wholly owned subsidiary, TCI Express with an aim to eventually list it on the bourses as a separate company.

“The scheme is for demerger and transfer of Express Distribution (XPS) Undertakings, & delayering of TCI’s global holding structure by liquidation of its wholly subsidiary, TCI Global Holding (Mauritius) and consequent capital reduction,” TCI said in a BSE filing.

The business will be transferred from April 1, 2016.

The equity shareholders of TCI shall receive 1 equity share of Rs 2 each of TCI Express for every 2 equity shares of Rs 2 each held on the Record Date in the company, it added.

As a part of it, TCI Express will also seek listing on the stock exchange (s) after approval of the scheme by the High Court.

At 10:01 am, the stock was up 14% at Rs 283 on the BSE. The trading volumes on the counter jumped over ten-fold with a combined 819,123 shares changed hands on the BSE and NSE so far.