Shares of this small-cap Real Estate stock plunged up to 7.30 percent in Thursday’s trading session after the company sold its entire stake in one of the wholly-owned subsidiary companies. In the past six months, the company’s stock has gained nearly 60 percent.
With a market capitalization of Rs 70,125.87 crores, the stocks of Macrotech Developers Limited started their trading session at Rs 750.05 and currently trades at Rs 727.15.
The company’s stock saw an intra-day low of Rs 702 exhibiting a fall of around 7.30 percent compared to the previous close of Rs 756.90 apiece.
Such bearish movements in the stock prices were observed after the company, through a regulatory filing with the exchange dated 26th October 2023, informed that it has signed a Share Purchase Agreement (SPA) to sell a 100 percent stake in a wholly-owned subsidiary company.
The company will sell the entire stake in ‘Palava Induslogic 3 Private Limited’ (PI3PL) to NewCold India Holding B.V., a Netherlands-based company engaged in the business of cold storage warehousing and ancillary-related services.
The Real Estate company will receive a total consideration of Rs 153.65 crores from the stake sale. Moreover, the whole process of disposal of Macrotech’s stake in the subsidiary is expected to be executed by 8th January 2024.
During the recent financial quarters, the company has seen drastic downward movements as far as the operating revenues and net profits are concerned.
The operating revenues fell from Rs 3,255.38 crores during Q4FY22-23 to Rs 1,617.4 crores during Q1FY23-24, and, the net profits, in congruence with the pattern, declined from Rs 749.16 crores to Rs 180.7 crores.
The latest shareholding data of the company showcases the Promoters holding a 74.93 percent stake and the Foreign Institutional Investors (FIIs) holding a considerable stake of 20.52 percent in the company.
Macrotech Developers Limited is the largest real estate developer based in India with its core business being residential real estate developments. The company mainly focuses on affordable and mid-income housing. Geographically, the company derives a majority of its revenue from India.
Written by Amit Madnani
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