Mahindra Lifespace surges 8% on foray into society redevelopment in Mumbai

With the current addition, it has exceeded its guidance of land bank addition worth Rs 2,500 crore of development value, every year for FY23, ICICI Securities said.

Shares of Mahindra Lifespace Developers surged 8 per cent to Rs 374.50 on the BSE in Thursday’s intra-day trade in an otherwise weak market after the company said it forayed into society redevelopment space and will be developing two adjacent housing societies in the Santacruz suburb of Mumbai.

Mahindra Lifespace Developers is the real estate and infrastructure development arm of the Mahindra Group. “The company and the two societies will execute definitive documents upon completion of due diligence. The project will offer Mahindra Lifespace a revenue potential of around Rs 500 crore,” the company said in an exchange filing.

Mahindra Lifespace has developed more than 10.77 million square feet of space in the Mumbai Metropolitan Region. Having delivered homes to more than 14,800 satisfied customers across India, it has an overall footprint spanning 32.14 million sq. ft. of completed, ongoing and forthcoming residential projects across seven Indian cities, the release added.

Mahindra Lifespace had earlier announced land bank addition with revenue potential of Rs 2,100 crore in FY23. With the current addition, it has exceeded its guidance of land bank addition worth Rs 2,500 crore of development value, every year for FY23.

We like Mahindra Lifespace given its strong parentage, management’s focus on expanding its overall scale of operation and a comfortable balance sheet,” ICICI Securities said in a note.