The shares of the leading real estate developer jumped 8 percent after the company’s subsidiary developed India’s first integrated multi-sports stadium worth Rs 1,500 crore.
With a market capitalization of Rs 1,952.46 crore, the shares of Omaxe Ltd were trading at Rs 106.75 per share, increasing around 4.90 percent as compared to the previous closing of Rs 101.76 apiece.
According to the company filing, Worldstreet Sports Center Limited, a wholly owned subsidiary and special purpose company (SPC) of Omaxe will be developing India’s first integrated multi-sports stadium, retail, and hospitality hub spread across an area of 50.40 acres in Delhi for around Rs 1,500 crore.
Additionally, The business plans to cover construction costs through internal accruals and expects to generate around Rs 2500 crore in income from retail unit sales. Omaxe Ltd won the Delhi Development Authority’s (DDA) proposal to create an integrated multi-sports arena in Dwarka using the Design, Build, Finance, and Operate and Transfer (DBFOT) system on the aforementioned site.
According to the agreement, Omaxe’s subsidiary would build an outdoor stadium with a minimum seating capacity of 30,000. The indoor stadium is planned to hold 2000 people. This venue is anticipated to accommodate kabaddi, badminton, table tennis, chess, kickboxing, boxing, and other activities.
Furthermore, the firm will build and manage the sports stadium and club for 30 years before handing it over to the DDA. The Company will build and manage the commercial facilities under a 99-year lease.
Looking into Omaxe Ltd’s financials, the revenue increased by 145 percent, from Rs 244 crore in Q3 FY23 to Rs 599 crore in Q3 FY24. During the same period, net loss decreased by 34 percent, from Rs 109 crore to Rs 72 crore.
As per the latest shareholding pattern data for the quarter ended December 2023, the company’s Promoters hold a 74.14 percent stake, and the Foreign Institutional Investors (FIIs) hold a 7.06 percent stake in the company.
Omaxe Ltd. develops real estate projects for residential, commercial, and retail reasons and has a presence in 27 locations throughout eight Indian states. It has worked on a variety of projects, including contractual construction, township development, commercial complexes, multi-story apartments, and more.
Written by:- Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
