Reliance Communications (RCom) on Sunday announced it is hiving off its entire real estate assets,estimated to be of around Rs 12,000 crore,into a separate listed company.
Besides unlocking the value of its real estate,RCom shareholders will free shares in Reliance Properties in the ratio 1:1.
Indicative value of Reliance Properties shares is Rs 60 per share and market price of RCom share is Rs 130. This translates into an almost 50 per cent enhancement in shareholders value in the company.
The Board of Directors has in principle decided on a demerger of the real estate held by RCom into a separate unit,Reliance Properties Ltd. The preliminary and indicative monetisable value of RComs real estate on development is estimated by independent valuers at over Rs 12,000 crore ($2 billion),which is equal to Rs 60 ($1) per RCom share, the company said in a statement.