The shares of prominent players in the field of real estate gained up to 12 percent after the company planned to deploy the capital to fuel its growth plans and expand its operations in various locations.
With a market capitalization of Rs 1,395.55 crore, the shares of Transindia Real Estate Ltd were trading at Rs 57 per share, increasing around 9.45 percent as compared to the previous closing of Rs 52.08 apiece.
As per the company filing, Transindia Real Estate Ltd has signed a definitive agreement to sell its logistics park at Jhajjar in Haryana at an enterprise value of approximately Rs 636.71 crore. The deal consummation will help Transindia Real Estate Limited (TREL) realize substantial value from this divestment and continue to have zero debt.
Furthermore, as a result of this divestment, Transindia Real Estate Limited would get cash proceeds of more than Rs 433.37 crore as a result of this divestiture. The funds will be used to drive the company’s expansion objectives and extend its operations in many areas.
In addition, the Company has sold its 10% stake in Malur Logistics & Industrial Parks Private Limited, Venkatapura Logistics & Industrial Parks Private Limited, Kalina Warehousing Private Limited, Panvel Warehousing Private Limited, and Allcargo Logistics & Industrial Park Private Limited for approximately Rs 4.55 crore in equity.
Looking at the company’s financials, Transindia Real Estate Ltd’s sales increased by 30% from Rs 36.30 crore in Q3FY23 to Rs 25.55 crore in Q3FY24. During the same period, net profit decreased by 13% from Rs 7.84 crore to Rs 6.80 crore.
Transindia Real Estate Ltd reported return ratios in the recent financial year with a return on equity (ROE) of 7.18 percent and a return on capital employed (ROCE) of 10.9 percent.
According to the latest shareholding data available for the December 2023 quarter, the company’s Promoters hold 69.91 percent stake, the Domestic Institutional Investors hold 1.31 percent and the Foreign Institutional Investors (FII) hold 7.68 percent.
Transindia Real Estate Limited is an Indian corporation that specializes in real estate, storage, and commercial logistics. The company invests in logistics assets that help businesses grow and streamline their global and domestic supply networks.
Written by:- Abhishek singh
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