Deal with CPPIB energises Phoenix Mills

Phoenix Mills gained 4.23% to Rs 427.80 at 09:51 IST on BSE after the company announced forming a strategic investment platform Island Star Mall Developers with Canada Pension Plan Investment Board.

The announcement was made after market hours yesterday, 5 April 2017.

Meanwhile, the S&P BSE Sensex was down 57.09 points, or 0.19%, to 29,917.15. The S&P BSE Mid-Cap index was down 36.48 points, or 0.26%, to 14,219.07

On the BSE, so far 12,000 shares were traded in the counter, compared with average daily volumes of 28,908 shares in the past one quarter. The stock had hit a high of Rs 438.10 and a low of Rs 423.85 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 285.05 on 15 November 2016. The stock had outperformed the market over the past 30 days till 5 April 2017, rising 10.01% compared with the 3.36% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, gaining 9.85% as against Sensex's 11.52% gain.

The mid-cap company has equity capital of Rs 30.61 crore. Face value per share is Rs 2.

Phoenix Mills and Canada Pension Plan Investment Board (CPPIB) announced participation in a strategic investment platform Island Star Mall Developers (ISMDPL) to develop, own and operate retail-led mixed-use developments across the country. CPPIB will initially own 30% in Island Star Mall with an equity commitment of approximately Rs 724 crore. CPPIB plans to invest a total of approximately Rs 1600 crore in multiple tranches, to own up to 49% stake in the platform. Pre-money enterprise value of ISMDPL is pegged at about Rs 2200 crore.

ISMDPL owns Phoenix MarketCity Bangalore, a mall which opened in 2011, with gross leasable area of 1 million sq. ft. The funds will be used for acquiring and developing both greenfield assets on newly purchased land banks, as well as existing operating retail assets. Phoenix Mills will manage all development and operational assets in ISMDPL.

On a consolidated basis, Phoenix Mills's net profit fell 6.86% to Rs 44.54 crore on 11.72% decline in net sales to Rs 436.69 crore in Q3 December 2016 over Q3 December 2015.

Phoenix Mills focuses on real estate development and entertainment.

Powered by Capital Market - Live News