Synopsis:
Hemisphere Properties India Limited allotted 7.5 crore Cumulative Redeemable Preference Shares, totalling Rs. 75 crores, on a private placement to the Promoter, remaining unlisted with terms consistent with prior disclosures.
During Monday’s trading session, shares of a company involved in the construction and development of commercial buildings, industrial sheds, offices, house buildings, hotels or other allied works are in focus on the stock exchanges, after the company’s Board approved allotting Rs. 75 crore preference shares to the President of India.
With a market cap of Rs. 4,915 crores, the shares of Hemisphere Properties India Limited hit an intraday high at Rs. 176.2 on BSE, up by around 2 percent, as against its previous closing price of Rs. 173.05 The stock has delivered negative returns of over 10 percent in the last one year, but has gained by nearly 26 percent in the last one month.
What’s the News
According to the latest exchange filings, the Board of Hemisphere Properties India Limited (HPIL), at its meeting held on 15th September, has approved and allotted 7.5 crores Cumulative Redeemable Preference Shares (Tranche-4) with a face value of Rs. 10 each.
These shares, issued at par, amount to a total of Rs. 75 crores and have been allotted on a private placement basis to the Promoter of the Company – the President of India, acting through the Ministry of Housing & Urban Affairs. The allotted shares will remain unlisted, and both the pricing and terms associated with the issue will be consistent with the disclosures previously made.
Financials & more
Hemisphere Properties reported a marginal growth in its revenue from operations, showing a year-on-year increase of around 20 percent from Rs. 0.2 crores in Q1 FY25 to Rs. 0.24 crores in Q1 FY26. In contrast, its net loss increased during the same period from Rs. 2.1 crores to Rs. 2.64 crores, representing a rise in the losses of around 26 percent YoY.
Hemisphere Properties India Limited was incorporated in 2005 as a real estate entity with the purpose of holding, managing, and monetising surplus land identified during the disinvestment of Videsh Sanchar Nigam Limited (VSNL), presently known as Tata Communications Limited (TCL). These land parcels were designated for transfer to a separate company to ensure their optimal use in a transparent and structured manner.
In 2012, the President of India, acting through the Department of Telecommunications (DoT), acquired a majority stake in HPIL, granting it the status of a Central Public Sector Enterprise (CPSE).
Subsequently, a Scheme of Arrangement between Tata Communications Limited and HPIL was formulated and approved by the NCLT in 2018 and the Ministry of Corporate Affairs (MCA) in August 2019, enabling the legal transfer of the identified land parcels to HPIL.
Following these approvals, the Administrative Ministry of HPIL was shifted from the Department of Telecom to the Ministry of Housing and Urban Affairs (MoHUA). Presently, HPIL owns ~2.99 million sq.m. (or 739.69 acres) of prime land across 5 locations in 4 states in India. These parcels, situated in key urban and semi-urban areas, offer opportunities for residential, commercial, mixed-use, and institutional development.
Written by Shivani 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. Trade Brains Technologies Private Limited 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.
