Bengaluru-headquartered real estate firm Puravankara Ltd. has announced a significant move to bolster its financial strength.
On June 13, Puravankara Ltd. disclosed that its board has approved raising up to ₹1,000 crore through Qualified Institutional Placement (QIP). This decision marks a strategic step for the company to enhance its capital base and fuel its growth ambitions.
Shares of Puravankara Ltd saw a notable increase of over 1.30% to trade at ₹440.10 apiece on the NSE on Friday.
Land Acquisition in Thane: Earlier this month, Puravankara Ltd. announced the acquisition of 12.75 acres of prime land in Patlipada on Ghodbunder Road, Thane. This purchase, made through its wholly-owned subsidiary Purva Oak Private Limited, is poised to significantly enhance the company's project portfolio.
Financial Performance: In its March quarter results, the real estate developer reported a net profit of ₹42 crore, reflecting a 33 percent year-on-year (YoY) decline. However, the company saw a substantial increase in revenue, which surged by 112 percent YoY to ₹947 crore.
Mumbai Project: In April 2024, Puravankara Ltd. was selected as the preferred developer for the redevelopment of a residential housing society in the upscale Pali Hill locality of Mumbai. This project is expected to further cement the company’s reputation in the redevelopment sector.
The approval to raise ₹1,000 crore through QIP is indicative of Puravankara’s proactive approach to securing financial resources necessary for expansion and development. The recent land acquisition in Thane, coupled with the significant GDV potential, showcases the company's robust pipeline and strategic foresight.
Moreover, the company's involvement in high-value projects, such as the redevelopment initiative in Mumbai, highlights its capability to undertake and deliver large-scale developments.
Puravankara Ltd.'s strategic moves, from raising substantial funds via QIP to acquiring valuable land assets and securing high-profile projects, underscore its commitment to growth and market leadership in the real estate sector. Investors and stakeholders will be keenly watching the company's next steps as it navigates through these ambitious endeavors.
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