Share price of one of the largest real estate companies in India, moved down by nearly 12.81% to Rs. 117.8 in the trading session of March 6th, compared to its previous close of Rs. 106.15, after the company received a vacation order for its land.
With a market capitalisation of Rs. 5,747.18 crores, at 01:25 p.m. the shares of Indiabulls Real Estate Limited on NSE were trading in the red at Rs. 105.75, down by 10.23 percent.
In the last one year, the company has delivered returns of about 69.5 percent and nearly 27.41 percent in the last six months. So far in 2024, it has given positive returns of around 20.44 percent.
According to recent regulatory filings with the stock exchanges, Maharashtra Industrial Development Corporation (MIDC) issued a vacation order to Indiabulls Real Estate Limited and Indiabulls Industrial Infrastructure Limited (IIIL), a subsidiary of the company.
MIDC has directed the company and IIIL to vacate 512.068 hectares of land located at Sinnar, Maharashtra, within one month of receipt of the order.
IIIL was in the process of planning and carrying out further development on the land at the Special Economic Zone (SEZ) and submitted a preliminary proposal for the revival plan with MIDC, and was expecting a favourable order of such hearing.
Since the company believes that this order was unlawful, it is considering its legal alternatives, including filing an appeal with the relevant authorities or court(s), to defend itself or seek redressal against the order.
In terms of financials, the company’s revenue from operations grew by 5.2% from Rs. 96 crores in Q2 FY23-24 to Rs. 101 crore in Q3 FY23-24.
However, the net profit of the company is Rs. -38 crore in Q3 FY23-24, a decline of 111.11 percent on a quarter-on-quarter basis from a loss of Rs. 18 crore in Q2 FY23-24.
Incorporated in 2006, Indiabulls Real Estate Ltd. is engaged in the business of construction and development of residential, commercial and SEZ projects across major Indian metros.
The company has a presence in residential real estate development across the price spectrum – Affordable, Mid-income, Premium & Uber-luxury space.
Written by Shivani Singh
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