 "Talwalkars Better Value Fitness gains as board approves demerger of gym biz")
Talwalkars Better Value Fitness Limited (TBVFL) was up 6% to Rs 240 on the BSE in early morning trade after the company announced that the board approved the demerger of Gym business into separate company Talwalkars Lifestyles Limited (TLL).
“In order to achieve better management and to have clear focus on business operations, the management of TBVFL has decided to demerge Gym business, thereby transferring Gym business of TBVFL to TLL, in the interests of maximizing overall shareholder value,” TBVFL said in a statement.
The shareholders of TBVFL will get one equity share having face value of Rs 10 each of TFL for every one equity share of TBVFL.
The Gym business offers a diverse suite of services including gyms, spas, aerobics, yoga and health counseling under the brand “Talwalkars”.
As on March 31, 2016, the Gym business has 176 fitness centers in 85 cities across India and Sri Lanka. Gym business accounted for 86% or Rs 198 crore of total business of TBVFL.
The securities of TLL will be listed on National Stock Exchange (NSE) and the BSE, after the effectiveness of the scheme, it added.
At 09:33 am, the stock was up 3.5% at Rs 235 on BSE, as compared to 0.24% rise in the S&P BSE Sensex. A combined 106,254 shares changed hands on the counter on BSE and NSE so far.
“In order to achieve better management and to have clear focus on business operations, the management of TBVFL has decided to demerge Gym business, thereby transferring Gym business of TBVFL to TLL, in the interests of maximizing overall shareholder value,” TBVFL said in a statement.
The shareholders of TBVFL will get one equity share having face value of Rs 10 each of TFL for every one equity share of TBVFL.
The Gym business offers a diverse suite of services including gyms, spas, aerobics, yoga and health counseling under the brand “Talwalkars”.
As on March 31, 2016, the Gym business has 176 fitness centers in 85 cities across India and Sri Lanka. Gym business accounted for 86% or Rs 198 crore of total business of TBVFL.
The securities of TLL will be listed on National Stock Exchange (NSE) and the BSE, after the effectiveness of the scheme, it added.
At 09:33 am, the stock was up 3.5% at Rs 235 on BSE, as compared to 0.24% rise in the S&P BSE Sensex. A combined 106,254 shares changed hands on the counter on BSE and NSE so far.