Mumbai-based Kanakia Group is seeking approval from the Mumbai bench of the National Company Law Tribunal (NCLT) to demerge its real estate division from its other business activities. This restructuring plan involves the separation of Kanakia Spaces Realty Pvt Ltd and Transparent Developers Pvt Ltd, to streamline operations and attract investment.
The move is designed to offer more flexibility in capital raising for both the real estate arm and the group's other ventures. Legal counsel representing the group argued that this demerger would enhance operational efficiency, allowing each business to access funding more effectively and appeal to a wider pool of potential investors.
During the recent NCLT hearing, the division bench instructed the companies to submit additional documents, including details on contingent liabilities, ongoing legal proceedings, and comprehensive data on letters of credit. The group has reportedly received consent from the majority of unsecured creditors for the proposed scheme.
The Kanakia Group believes that by separating its real estate activities from its other businesses, it will be able to better focus on its strategic goals, attract investments, and potentially unlock higher valuations for both sectors.