The land purchase is for an aggregate consideration of Rs 365 crore (subject to actual land area survey, deduction of TDS and applicable taxes) to be paid in tranches and interest of 7 per cent per annum payable during the interim period of payment on unpaid principal balance from the sale date, the company said.
This new project is Mahindra Lifespaces’ second residential development in Kandivali after its ‘Mahindra Roots’ project and will offer approximately 1 million sq. ft. of carpet area. The project is expected to be launched in FY 2023.
The deal is subject to approval of the shareholders of the company. The actual date of completion will depend on the receipt of requisite approvals from the statutory authorities, the company said in an exchange filing.
“We get this opportunity to monetise an unused land parcel, which is less than 10% of our entire land in Kandivali and will not have any impact on the operations of the company as no operations of the auto and farm sectors are carried out on the land being sold,” said Rajeev Goyal, CFO, Auto and Farm Sectors, M&M.
The stock of M&M was trading 1 per cent higher at Rs 849, after hitting an intra-day high of Rs 854 on the BSE. In comparison, the S&P BSE Sensex was up 0.95 per cent at 59,020 points at 02:36 pm.
To read the full story, Subscribe Now at just Rs 249 a month
Already a subscriber? Log in
Subscribe To BS Premium
₹249
Renews automatically
₹1699₹1999
Opt for auto renewal and save Rs. 300 Renews automatically
₹1999
What you get on BS Premium?
-
Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
-
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
Need More Information - write to us at assist@bsmail.in