Realty firm Arvind SmartSpaces Ltd's (ASL) shares climbed eight percent on Wednesday to Rs 250 per share after Quant Mutual Fund bought a 1.18 percent stake (5 lakh shares) in the real estate arm of Lalbhai Group.
The stock has surged 35 percent in the last month. It ended 6.31 percent higher at Rs 238.55 on the BSE today.
Back in August, the company said it will set up a Rs 900 crore residential platform with HDFC Capital Advisors, the investment manager of HDFC Capital Affordable Real Estate Fund – 3.
The proposed investments from ASL and HDFC Capital Affordable Real Estate Fund 3 will be Rs 300 crore and Rs 600 crore, respectively, in the platform.
The fund will be utilised for the acquisition of new projects for residential developments in the cities of Ahmedabad, Bengaluru, Pune, and Mumbai Metropolitan Region (MMR).
ASL said that it will set up a separate SPV (special purpose vehicle) for projects under this platform. It added that the platform will create an overall revenue potential of Rs 4,000-5,000 crore, excluding reinvestment potential.
The company's sales bookings grew by 8 percent to Rs 118 crore during the June quarter. The revenue from operations grew to Rs 60 crore in the April-June quarter, from Rs 27 crore in the year-ago period, while net profit rose to Rs 7.2 crore, from Rs 2.5 crore.
