TCI board approves Express Distribution division's demerger

Logistics firm Transport Corporation of India (TCI) today said its board has approved the demerger of its Express Distribution division undertaking into wholly-owned subsidiary TCI Express Ltd.
"... Subject to requisite approvals of shareholders and creditors of the respective companies, sanction of High Court of Hyderabad, stock exchanges, Sebi or such competent authority and other necessary statutory approvals," the company said in a statement.
The board also announced delayering of its global holding structure by liquidation of its wholly-owned subsidiary TCI Global Holding (Mauritius) Ltd and consequent capital reduction under the said scheme, it added.
With a clear objective to capitalise on the fast growing e-commerce and high value express business, its said the restructuring will create a focused entity with the right operational flexibility to create prospective for hyper growth.

"The demerged entity will provide shareholders a unique opportunity to participate in the growth of a well established express company with a strong customer base...
"... Trained employees and a modern national infrastructure of hubs, trucks and delivery vans, to enhance value for our shareholders and provide momentum for enhanced growth for the Group," the statement said.
According to the proposed scheme, TCI Express Ltd will issue and allot one equity share of Rs 2 each fully paid up for every two equity share of Rs 2 each held in TCI on record date to all shareholders of TCI so as to create a mirror image of shareholding pattern in TCI Express Ltd.

As part of the scheme, TCI Express shall also seek listing on stock exchange post High Court approval, the statement said.