Shares of Mahindra Group's real estate and infrastructure development arm, Mahindra Lifespace Developers, climbed 8.8 percent on Thursday, January 19, after the company bagged two redevelopment projects in Mumbai that are expected to create a revenue of around Rs. 500 crore.
During Thursday’s trade, the stock opened at a price of Rs. 353 per share against the previous close of Rs. 347 per share and grew further during the early trading session to touch an intraday high of Rs. 377.55. It was trading at ₹374, up by 7.78 percent, at 11:15 a.m. on the BSE.
The stock touched a 52-week high of Rs. 550.75 on September 12, 2022, and a 52-week low of Rs. 237.95 on January 27, 2022, indicating that at the current level, the stock is trading over 57 percent above its 52-week low and 32 percent below its 52-week high.
The stock has declined over 14 percent in the last six months. However, in the past one year, it has given a positive return of nearly 42 percent. In the past five years, the stock has gained over 111 percent.
The company along with its subsidiary companies is engaged in the development of residential projects and large formats developments such as integrated cities and industrial clusters. Its segments include projects, project management, and development and operating of commercial complexes.
On Wednesday, the company informed through a regulatory filing that it has been selected as the preferred partner to redevelop two adjacent residential societies in the Santacruz suburb of the city.
The developer and both societies will execute definitive documents upon completion of due diligence. The project is expected to have a revenue potential of around ₹500 crore.
Mumbai has limited opportunities for greenfield development due to the absence of vacant land parcels. The only viable opportunity for any new development is through redevelopment – a market estimated to be worth over ₹30,000 core, the company added.
“Society redevelopment offers an attractive avenue for new real estate development in fully built-out neighbourhoods in Mumbai. It enables homeowners in existing properties to upgrade to bigger and better homes that are equipped with world-class amenities and contemporary features,” said Arvind Subramanian, Managing Director and CEO of the company.
"We foresee redevelopment as an exciting opportunity for reputed real estate developers like Mahindra Lifespaces and expect to build a meaningful presence in this space over the coming years," he added.
Mahindra Lifespaces has built over 10.77 million square feet in the Mumbai Metropolitan Region. It has a total footprint of 32.14 million square feet of completed, ongoing, and upcoming residential projects in seven Indian cities.
