Mahindra Lifespace Developers lost 1.06% to Rs 564.85 at 9:27 IST on BSE, with the stock sliding on profit booking after the firm said its board has recommended raising an amount not exceeding Rs 750 crore through private placement of NCDs.
The announcement was made before market hours today, 17 June 2014.
Meanwhile, the S&P BSE Sensex was down 6.71 points or 0.03% at 25,183.77.
On BSE, so far 6,962 shares were traded in the counter as against average daily volume of 27,000 shares in the past two weeks.
The stock hit a high of Rs 575.95 and a low of Rs 561.10 so far during the day.
Shares of Mahindra Lifespace Developers had rallied 12.91% in three trading sessions to settle at Rs 570.90 on Monday, 16 June 2014, from a recent low of Rs 505.60 on 11 June 2014.
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Mahindra Lifespace Developers said that the company has an overall borrowing limit of Rs 1500 crore approved by shareholders at the 12th Annual General Meeting held on 21 July 2011. As per MCA circular validity of said approval is upto 31 March 2015 and the said will therefore be re-confirmed by shareholders at the ensuing Annual General Meeting scheduled on 7 August 2014 in terms of the Companies Act, 2013.
Further the company said that within the aforesaid borrowing limit of Rs 1500 crore, the board of directors of the company at its meeting held on Monday, 16 June 2014, considered and recommended for the approval of the shareholders at the ensuing Annual General Meeting of the company to be held on 7 August 2014, an amount not exceeding Rs 750 crores towards private placement of non-convertible debentures and/or other debt securities.
Separately, Mahindra Lifespace Developers after market hours on Monday, 16 June 2014 said that it has on 16 June 2014 launched its new business vertical focused on making quality housing at affordable prices accessible to a wider cross-section of people. In keeping with the Mahindra Group's philosophy of enabling people to rise while driving positive change, Happinest is aimed at families having a current, combined monthly income of Rs 20,000 to Rs 40,000 per month, the company said. The first two projects will be launched soon in Chennai and Mumbai Metropolitan Region, the company said in a statement.
Arun Nanda, Chairman, Mahindra Lifespace Developers said, "Mahindra Lifespace has always believed in pioneering new approaches and business models, be it the Mahindra World Cities or Green residential developments. Happinest is our strategic endeavour to address the large and under-served home ownership market in India by using our manufacturing and innovative mindset to create mass solutions at affordable prices".
Mahindra Lifespace Developers' consolidated net profit fell 62.93% to Rs 30.30 crore on 47.71% decline in income from operations to Rs 189.38 crore in Q4 March 2014 over Q4 March 2013.
Mahindra Lifespace Developers, the real estate and infrastructure development business of the Mahindra Group, is a leader in sustainable urban development, through the creation of residential and integrated large format developments across nine Indian cities - Mumbai, Pune, Nagpur, Gurgaon, Faridabad, Jaipur, Chennai, Hyderabad and Bangalore. The Company's residential & commercial development footprint includes over 0.8 million sq. m of completed projects and over 1.0 million sq. m of ongoing and forthcoming projects.
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