Lloyds Enterprises falls over 4 per cent; co to restructure realty business

As far as recent development is concerned, the board of directors of Lloyds Enterprises approved the restructuring of its realty business

Lloyds Enterprises share price today: Lloyds Enterprises share price declined over 4 per cent in Tuesday's session as market participants parse the realty business restructuring plan. The stock declined as much as 4.14 per cent to ₹70.11 so far. 

 

Lloyds Enterprises share price was trading 3.41 per cent at ₹70.75 as of 10:52 AM., compared to 0.06 per cent advancement in the Nifty 50 index. 

 

The counter has surged 56.36 per cent on a year-to-date basis this calendar year. It had its 0.29 million shares change hands on BSE, compared to a two-week average volume of 2.79 million shares.   CATCH STOCK MARKET LIVE UPDATES TODAY

 

Why did Lloyds Enterprises share price fall today?

 

Lloyds Enterprises share price declined amid a broad-based weakness in the market. The drop comes even as the board of directors of Lloyds Enterprises approved the restructuring of its realty business. 

 

As a part of the restructuring process, Lloyds Enterprises will first merge Lloyds Realty Developers and Indrajit Properties. Post the amalgamation, the company will demerge the realty business as a new arm named Lloyds Realty Limited, according to an exchange filing.  

 

The company expects that the merger of Lloyds Realty Developers and Indrajit Properties will fortify the balance sheet of the newly listed entity. 

 

Lloyds Enterprises intends to complete the merging process by April 1, 2026. After the merger, the company will move ahead to start the demerger process with the board-approved share exchange ratio. Shareholders of Lloyds Realty Developers will receive 43 equity shares with a face value of ₹1 of Lloyds Enterprises each for every 350 equity shares with a face value of ₹1 held in Lloyds Realty Developers.  

 

Meanwhile, Lloyds Enterprises shareholders will receive one equity share with a face value of ₹1 of Lloyds Realty for every two equity shares held in the company with a face value of ₹1, according to the exchange filing. 

 

The company is expecting that the strategic reorganisation will fundamentally provide Lloyds Enterprises' shareholders with a focused participation in a pure-play real estate growth vehicle which has an active land bank and projects in hand. The newly listed entity has a revenue growth potential of more than ₹7,000 crore in coming years.

 

Lloyds Realty has a residential development project in Goregaon West, a slum rehabilitation project in Bandra, and industrial park and data centre projects in Taloja, among many others, the company said in the exchange filing.