Prozone Realty Limited has announced two significant corporate actions approved by its Board of Directors.

New Wholly-Owned Subsidiary

The Board has given the green light for incorporating a new wholly-owned subsidiary named Prozone Arcade Pvt Ltd. The company will invest Rs 1.00 lakh in cash for 10,000 equity shares of Rs 10.00 each in the new entity. Prozone Arcade will operate in the construction and real estate sectors, expanding Prozone Realty's presence in these areas.

Promoter Group Reclassification

In a move that could impact the company's shareholding structure, the Board has approved requests from certain promoter group members to be reclassified into the public shareholder category. The reclassification, subject to regulatory and shareholder approvals, involves the following individuals and entities:

• Ghanshyam Rawat
• Vandana Vaidh (holding 1,620 shares)
• Pushpalata Rawat
• Rakesh Rawat Family Trust (holding 35,85,796 shares, representing a 2.35% stake)

The applicants have confirmed compliance with regulatory conditions, including:

• Holding less than 10% voting rights
• Not exercising control over the company
• No special rights through formal or informal arrangements
• No representation on the board of directors

Regulatory Compliance

The reclassification is pending approvals from stock exchanges, shareholders, and other required authorities. This move aligns with SEBI regulations on promoter reclassification and could potentially impact the company's shareholding pattern.

Prozone Realty's actions reflect ongoing corporate restructuring efforts, potentially aimed at streamlining operations and shareholding structure. Investors and market watchers will be keen to see how these changes may impact the company's future strategies and governance.

Prozone Realty Limited , a prominent real estate developer, is pursuing a strategic expansion into tier-2 cities with a focus on mixed-use projects aimed at long-term value creation. The company's latest financial results for Q2 FY26 reflect this strategy, showing stable performance and continued emphasis on retail and residential developments.

Expansion Strategy

Prozone Realty is actively developing large-scale mixed-use projects in tier-2 cities, capitalizing on the urbanization trends in these areas. The company's approach involves allocating 75% of its land for residential and commercial developments under a build-and-sell model, while the remaining 25% is dedicated to retail spaces following a build-and-lease model.

Retail Performance

The company's retail segment continues to show resilience, with stable occupancy rates:

• Ch Sambhaji Nagar Mall: 93% leased (excluding lower ground floor)
• Coimbatore Mall: 96% leased

These high occupancy rates underscore the strength of Prozone Realty's retail portfolio in tier-2 markets.

Residential Projects

Prozone Realty's residential projects are gaining traction:

• Coimbatore Residential: Received 38 new bookings worth Rs 234.00 million in Q2 FY26
• Nagpur Residential: Completed 4 towers with 336 apartments, with part occupancy certificates obtained for 242 units

Financial Highlights (Q2 FY26)

• Total Income: Rs 4,912.29 million
• EBITDA: Rs 204.10 million (24% increase year-over-year)
• Net Profit: Rs 34.20 million (increase from Rs 3.90 million in Q2 FY25)

Segment-wise Revenue

The company's CEO stated, "Our focus on mixed-use developments in tier-2 cities is yielding positive results. We are maintaining stable retail occupancy above 90% while strategically launching residential phases to enhance cash flows."

Prozone Realty's strategy of balancing rental income stability from its retail assets with the cash flow generation from residential and commercial sales positions the company for growth in India's evolving real estate market.

As the company continues to expand its asset portfolio and capitalize on the urbanization trends in tier-2 cities, investors and stakeholders will be watching closely to see how this strategy unfolds in the coming quarters.