The shares of this small-cap real estate company, surged nearly 9 percent after the board approved raising Rs. 225 crores through a preferential issue.
Share price variations:
With a market capitalization of Rs. 3,079.55 crores, Ajmera Realty & Infra India Ltd. rose to an intraday high of Rs. 874.00 representing an 8.65 percent increase from its previous closing price of Rs. 804.35 per share.
Reason for the Rise:
According to exchange filings, the board of directors of Ajmera Realty & Infra India Ltd. has considered and approved the allotment of 31,64,557 equity shares of face value of Rs. 10 each at a premium of Rs. 701 each amounting to Rs. 225 crores to strategic investors on Preferential Allotment basis.
Out of the strategic investors to whom the equity shares of the company have been allotted, Ace Investor Mukul Agrawal has subscribed to one of the highest proportion of equity shares along with Authum Investment & Infrastructure Ltd, both holding 7,59,493 equity shares each.
Financial Performance:
For Q1FY25 the company reported a net profit increase of 51.83 percent to Rs. 32.75 crores compared to Rs. 21.57 crores in Q1FY24, while revenue from operations also marked an increase of 66.9 percent to Rs. 193.73 crores from Rs. 116.05 crores in comparison to the same period.
The company has consistently improved its ROE and ROCE over the past four years, rising from 4.83 percent and 5.90 percent in FY21 to 12.68 percent and 12.25 percent in FY24, respectively. The company’s shares have delivered a 28 percent return over the past month and 93 percent year-to-date.
As of Q1 FY25, the company has an ongoing project portfolio of 11 lakh sq. ft. across seven active projects, 17 lakh sq. ft. in potential launches, and an owned land bank of 1.10 crore sq. ft. with future development potential.
About the company:
Incorporated in 1985 Ajmera Realty & Infra India Ltd is one of the leading players in the Real Estate business. The Company is focused on premium developments in luxury and mid-luxury projects in the residential segment and most of its projects are in Mumbai Metropolitan region and Bangalore.
Written By Joseph Pv
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