Shares of Mahindra Lifespace Developers soared 20 per cent to hit a 52-week high of Rs 320.55 on the BSE in Thursday’s intra-day after the company announced that it will purchase approximately 9.24 acres of land in Kandivali, Mumbai from Mahindra & Mahindra (M&M) for real estate development. M&M is the promoter and holding company of Mahindra Lifespace.
This new project is Mahindra Lifespaces’ second residential development in Kandivali after its ‘Mahindra Roots’ project and will offer approximately 1 million sq. ft. of carpet area. The project is expected to be launched in FY 2023.
The deal is subject to approval of the shareholders of the company. The actual date of completion will depend on the receipt of requisite approvals from the statutory authorities, Mahindra Lifespace said in an exchange filing.
The land purchase is for an aggregate consideration of Rs 365 crore (subject to actual land area survey, deduction of TDS and applicable taxes) to be paid in tranches and interest of 7 per cent per annum payable during the interim period of payment on unpaid principal balance from the sale date, the company said.
“We get this opportunity to monetise an unused land parcel, which is less than 10% of our entire land in Kandivali and will not have any impact on the operations of the company as no operations of the auto and farm sectors are carried out on the land being sold,” said Rajeev Goyal, CFO, Auto and Farm Sectors, M&M.
The stock of M&M was trading 1 per cent higher at Rs 849, after hitting an intra-day high of Rs 854 on the BSE. In comparison, the S&P BSE Sensex was up 0.95 per cent at 59,020 points at 02:36 pm.
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