Shares of Rekha Jhunjhunwala-backed Valor Estate might be showing up to a 16 per cent in some trading apps today as the real estate counter traded ex-demerger today.
The company spun-off its hospitality business in the country. All the eligible shares of Valor Estates, as of the record date, will receive shares of the demerged new energy entity in 10:1 ratio.
The realty developer Valor Estate has undertaken a realignment of its business portfolio by divesting non-core assets, hiving off its hospitality business, and improving capital allocation for high-priority projects including real estate. The demerger will result in a separate, publicly listed entity for the hospitality business. Besides this, Valor will have amalgamation of Esteem Properties with itself.
One fully paid-up equity share of the resulting company (Advent Hotels) having face value of Rs 10 each for every 10 fully paid-up equity shares of Rs 10 each of the company shall be issued and allotted by the resulting company to the equity shareholders of the company holding equity shares as on the record date, said Valor Estate in the exchange filing.
Shares of Valor Estates opened at Rs 209 on Friday as the indicated fall was due to the ‘subtraction’ of its energy business value from the stock. However, it hit a lower circuit of 5 per cent to Rs 198.60 on Friday, with its total market capitalization falling to Rs 10,700 crore. The stock has been moved to the ‘T’ segment, meaning that intraday buying and selling is not allowed in the stock.
Thursday, July 17 was the last to buy Valor shares to become eligible to get the shares of its new hospitality business entity as Monday marks the record date for the same. The stock is under ‘T+1’ settlement cycle. The record date determines the eligibility of shareholders for the given corporate action.
Investors having the delivery of shares of Valor Estate in their demat accounts will be issued one share of Advent Hotels, its hospitality business entity, for each share of Valor Estate held as on record today. The subtracted value is the discovered price of the Advent Hotels.
The demerger followed the approval from the NCLT on July 1. The said equity shares to be allotted by the resulting company are proposed to be listed with BSE and the National Stock Exchange of India, subject to applicable regulations and the necessary regulatory approvals.
Rekha Jhunjhunwala owned 2,50,00,000 equity shares, or 4.65 per cent stake in the company as of March 31,2025. However, the company is yet to file its shareholding pattern for the quarter ended on June 30, 2025. Her stake valued at Rs 588.62 crore as on Thursday and is valued at Rs 496.5 crore on Friday, after the demerger, suggesting a Rs 92 crore fall in mcap.