Shares of Ajmera Realty surge 5 percent on securing Rs 360 crore redevelopment project

Shares of Ajmera Realty surged by 5 percent on October 17 after the company secured a residential redevelopment project in Mumbai.

As of 11:51 am, the stock was trading at Rs 428.25 on the National Stock Exchange, reflecting a 4.55 percent increase from its previous closing price.

According to a BSE exchange filing under Regulation 30 of SEBI LODR, Ajmera Realty & Infra India Limited announced that it had been selected as the developer for the redevelopment of the Balkrishan Co-operative Housing Society in Versova, Mumbai. The targeted sale value of the project is Rs 360 crore.

The company’s initiative is poised to enhance the region’s growth and increase property values. The project mainly comprises 3 BHK residential apartments, covering an estimated carpet area of approximately 90,700 sq ft. The project’s focus on modernization and improved living standards is in line with ARIIL’s goal of expanding its footprint in the redevelopment segment within the Mumbai Metropolitan Region (MMR).

Dhaval Ajmera, Director of ARIIL, stated, “Versova as a location has gained momentous demand in the last decade. Given the upcoming infrastructure projects, this sentiment will only strengthen further. This project will provide a lifestyle upgrade and lucrative value appreciation on the existing residential assets to the residents and quality urban living to new homebuyers. As we chart the perceived growth of ARIIL, this redevelopment project represents a strategic step towards achieving the 5 times growth through JV/JDA /low capex acquisition via inorganic strategy.”

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In the company’s recent business update for Q2FY24, the real estate firm revealed that its sales value increased to Rs 252 crore in the September quarter, a significant rise from Rs 166 crore in the same quarter of the previous fiscal year.

Regarding the carpet area, the company sold 1.20 lakh sq ft, representing a 51 percent increase from the 79,976 sq ft sold in the corresponding quarter last year. The trading volume in the stock also saw a substantial uptick, with 11 lakh shares changing hands on the exchanges so far, notably higher than the one-month daily traded average of 81,000 shares.

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