Tata Communication has received board approval for demerger of approx 773 acres of surplus land, to a separate company and listing it later.

In a BSE filing Tata Communications stated, “The board of directors of Tata Communications at its meeting held today has approved a draft scheme of arrangement and reconstruction between Tata Communications and Hemisphere Properties India Limited (HPIL) and their respective shareholders.”

Further it stated that, under the scheme, demerger will be by way of reconstruction or splitting the company by transfer of the surplus land to HPIL and the consequent issue of equity shares by HPIL to the shareholders of Tata communications in the ratio of 1:1.

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