Realty developer K Raheja Corp is planning to consolidate its residential real estate portfolio to improve focus on housing and increase the scale of business.
The group also expects to attract strategic and financial investments in the company, which is proposed to be its flagship residential real estate development entity. The Mumbai bench of the National Company Law Tribunal (NCLT) has approved the demerger of K Raheja Group’s subsidiary K Raheja Corporate Services following the realty conglomerate’s application in order to access the capital markets through a listing of the same.
The group in its application had stated that it is seeking to consolidate the residential real estate business within the KRC Group into the resulting company K Raheja Corporate Services.
The demerger as set out under the scheme would attract investors seeking to acquire a stake or have exposure in a specialist residential real estate business.
Currently, K Raheja Corp has two listed companies—departmental store chain Shoppers Stop and Chalet Hotels. It is also the promoter of listed real estate investment trust Mindspace Business Parks REIT and operates malls under the Inorbit Mall brand.
