Mahindra Lifespace zooms 19% as firm to consider bonus issue plan

The board at its meeting scheduled on Wednesday, July 28, 2021, will consider the proposal for the issuance of bonus equity shares

Shares of Mahindra Lifespace Developers zoomed 19 per cent to Rs 793.10 on the BSE in intra-day trade on Friday after the company announced that its board will consider maiden bonus issue in their forthcoming meeting on Wednesday, July 28, 2021.

The share price of the real estate and infrastructure development company of Mahindra Group hit a 52-week high. The scrip has rallied 33 per cent in the past one month as against a rise of 1 per cent in the S&P BSE Sensex during the same period.

On July 1, 2021, the company intimated that a meeting of the board of directors is scheduled to be held on Wednesday, 28th July, 2021, to consider, inter-alia, unaudited standalone and consolidated financial results for the first quarter ended on 30th June, 2021 (Q1FY22).

The board of directors of the company at its meeting scheduled on Wednesday, July 28, shall, inter-alia, will also consider the proposal for issuance of bonus equity shares, subject to requisite approvals, the company informed exchanges on Thursday, July 22, after market hours.

Mahindra Lifespace is a pioneer in the Integrated Cities and Industrial Clusters (IC&IC) segment. It markets its products under this segment under two formats: large integrated cities under the brand ‘Mahindra World City’ and smaller industrial clusters under the brand ‘Origins’. Currently, there are two operational Mahindra World Cities in Chennai and Jaipur and an operational Origins project in Chennai. Development work is currently in progress in another industrial cluster project called Origins Ahmedabad.

"Efforts by the government to ramp-up vaccination are expected to mitigate the health risks at the macro level. At the same time, policy measures taken by the government and the Reserve Bank of India continue to be supportive — leading to better outlook for demand and investment," Mahindra Lifespace said in the financial year 2020-21 annual report.

Going ahead, triggers such as production linked incentive (PLI) schemes, softening of interest rates and credit availability, lower tax rates for new manufacturing facilities, coupled with global realignment of manufacturing, supply chains will drive IC & IC business. Also, leasing from Ahmedabad will give a push to the overall momentum, according to analysts.

At 12:13 pm, the stock traded 10 per cent higher at Rs 733.90 on the BSE as compared to a 0.21 per cent gain in the S&P BSE Sensex. A combined 622,000 equity shares had changed hands on the counter on the NSE and BSE so far.