Provogue to demerge real estate business into new entity

Apparel firm Provogue India today said it will demerge its real estate business into a newly incorporated entity.

As a part of a corporate restructuring plan, the company will also merge its subsidiary Prozone Enterprises with the new entity. The proposed restructuring was discussed at the meeting Provogue's board of directors today.

"The company authorises Akhil Chaturvedi and Deep Gupta whole-time directors, for taking necessary steps as may be required for any matters relating to the proposed corporate restructuring...," the company said in a filing to the Bombay Stock Exchange.

In the filing, the company did not provide details of the proposed new entity.

Provogue India's net profit for the quarter ended June 30, 2011 declined marginally to Rs 7.11 crore, compared to Rs 7.80 crore in the corresponding quarter of the previous fiscal.

The firm's net sales for the three months ended June 30, 2011 increased 3.73% to Rs 103.16 crore, as against Rs 99.45 crore in the first quarter of the previous fiscal.

The company's scrips closed at Rs 30 per share, down 1.80% from the previous close on the BSE.