The Phoenix Mills rose 2.27% to Rs 379.15 at 13:28 IST on BSE after the company said that Canada Pension Plan Investment Board could acquire up to 49% stake in the wholly owned subsidiary of the company.
The announcement was made during trading hours today, 22 December 2016.Meanwhile, the BSE Sensex was down 286.26 points, or 1.09%, to 25,956.12.
On the BSE, so far 9,981 shares were traded in the counter, compared with average daily volumes of 2,544 shares in the past one quarter. The stock had hit a high of Rs 391.65 and a low of Rs 370 so far during the day.
The stock hit a 52-week high of Rs 445 on 8 September 2016. The stock hit a 52-week low of Rs 238.30 on 29 February 2016.
The Phoenix Mills said that its wholly-owned subsidiary, Island Star Mall Developers (ISML), on 22 December 2016, entered into a non-binding term sheet with Canada Pension Plan Investment Board (CPPIB). Under the agreement, CPPIB can acquire up to 49% of the post issue paid-up equity share capital of ISML over a period of three years.
If the transaction is consummated in its entirety, then The Phoenix Mills' shareholding in ISML will reduced to 51% of the paid-up equity capital on a fully diluted basis. The funds so raised by ISML will be utilized for business development and growth purposes.
ISML owns and operates a retail mall in Bangalore known as Phoenix Marketcity. ISML recorded revenues of Rs 164.30 crore and profit after tax of Rs 37.10 crore in financial year ended 31 March 2016.
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Earlier this week, The Phoenix Mills entered into a share purchase agreement for acquisition of the entire 15.18% stake in its subsidiary Offbeat Developers (ODPL) held by Vistra ITCL (India) and IIRF Holdings X. Further, the company has entered into a share purchase agreement to acquire Eder River's entire 4.98% stake in ODPL. Subsequent to the completion of both the aforesaid transactions, the shareholding of The Phoenix Mills in ODPL will increase from 74.48% to 94.64%. The announcement was made after market hours on Monday, 19 December 2016.
On a consolidated basis, net profit of Phoenix Mills rose 41.98% to Rs 54.28 crore on 16.22% rise in net sales to Rs 491.08 crore in Q2 September 2016 over Q2 September 2015.
The Phoenix Mills focuses on real estate development and entertainment.
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