Marg Ltd, a Chennai-based diversified infrastructure company, is planning to hive-off its residential projects business to a wholly-owned new subsidiary Marg Properties Pvt Ltd.
The company is in the process of developing projects worth Rs 1,400 crore, which are expected to come under the new company when it goes on stream in the first quarter of 2011.
GRK Reddy, chairman and managing director, Marg group, said that the company has launched a new brand Marg Properties a year ago to handle the residential projects of real estate business. It would be be hived off once the company gets approval from the shareholders and the procedures gets completed. The process is expected to get completed by the first quarter of 2011, he said.
The company has informed BSE that its board of directors in a meeting held on December 30, 2010, has approved the proposal to hive-off the residential projects of the real estate business to Marg Properties Pvt Ltd, subject to the approval of the shareholders through postal ballot mechanism.
“Marg is basically into EPC (Engineering, Procurement and Construction) and infrastructure development, and the busines model for residential projects is different. The hive-off will help us to bring more clarity to the residential real estate business,” said Reddy. The group is currently developing residential space across ten projects.
