Mahindra Lifespace Developers surged 4.93% to Rs 470 at 18:52 IST on BSE after the company announced a joint venture with HDFC Capital to develop affordable housing projects in India.
The announcement was made after market hours yesterday, 18 October 2017.Meanwhile, the S&P Sensex was down 85.74 points or 0.26% at 32,498.61.
On the BSE, 2,236 shares were traded on the counter so far as against the average daily volumes of 3,071 shares in the past two weeks.
The small-cap company has equity capital of Rs 51.32 crore. Face value per share is Rs 10.
Mahindra Lifespace Developers (MLDL) said that the company has partnered with HDFC Capital Affordable Real Estate Fund-1 (HDFC Capital) - a fund managed by HDFC Capital Advisors, a wholly owned subsidiary of HDFC, to form a Platform focused on the development of affordable housing projects in India. The Platform will look to rapidly scale up in order to address the demand-supply gap in affordable housing in India, with an estimated development footprint of between 5 to 10 million square feet, depending on the locations selected for its projects, under the Happinest name.
The proposed developments will be undertaken through 'Mahindra Happinest Developers Limited' (MHDL), with a 51:49 equity share between MLDL and HDFC Capital. The first development to be undertaken by the joint platform will be 'Happinest, Palghar', expected to be launched in the H2 of FY18.
Mahindra Lifespace Developers' consolidated net profit fell 20.9% to Rs 13.81 crore on 40.9% rise in net sales to Rs 136.05 crore in Q1 June 2017 over Q1 June 2016.
Mahindra Lifespace Developers is the real estate development business of the Mahindra Group.
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