The shares of a major real estate development company rose 1.4% after its board approved raising Rs. 6,000 Crore through QIP.
Share price variations:
With a market capitalization of Rs. 69,084.43 crores, Oberoi Reality Ltd made an intraday high of Rs. 1911.00 representing a 1.4% increase from its previous closing price of Rs. 1885.35 per share.
Reason for the Rise:
According to exchange filings, the board of Oberoi Realty Ltd, at its meeting held on October 10, approved raising Rs. 6,000 crore through the issuance of equity shares or other securities on a private placement basis, including the option of a qualified institutional placement (QIP).
The pricing of the offer is yet to be decided and will be determined based on prevailing market conditions and other relevant factors.
Recent Developments and Collaborations:
In July, the company entered into an agreement for the development and redevelopment of approximately 2,576 square meters of land located on Carter Road, Bandra, Mumbai. Additionally, in May, the company entered into an agreement for the development and redevelopment of approximately 12,790 square meters of land situated in Adarsh Nagar, Worli, Mumbai.
Financial Performance:
For Q1FY25 the company reported a net profit increase of 81.72% to Rs. 584.51 crore compared to Rs. 321.64 crore in Q1FY24, while revenue from operations also marked an increase of 54.4% to Rs. 1,405.16 crore from Rs. 909.97 crore in comparison to the same period.
The stock has delivered a return of approximately 27% over the past 6 months and 65% over the past year. In FY24 the company had an ROE of 14.79% and an ROCE of 16.30%.
About the company:
Oberoi Realty Ltd is a Mumbai-based Real Estate Development Company. It is focused on premium developments in residential, office space, retail, hospitality, and social infrastructure projects.
Written By: Joseph Pv
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