Mahindra Lifespace Developers gains after board OKs QIP of shares

Mahindra Lifespace Developers rose 1.10% to Rs 406 at 10:37 IST on BSE after the company said its board approved raising upto Rs 400 crore by issuing equity shares to qualified institutional buyers.

The announcement was made before trading hours today, 2 September 2013.

Meanwhile, the BSE Sensex was up 150.34 points, or 0.81%, to 18,770.06.

On BSE, 21 shares were traded in the counter compared with average volume of 3,658 shares in the past one quarter.

The stock hit a high of Rs 406 and a low of Rs 405 so far during the day. The stock hit a 52-week high of Rs 472 on 18 July 2013. It hit a 52-week low of Rs 341.05 on 5 September 2012.

The stock had underperformed the market over the past one month till 30 August 2013, sliding 11.27% compared with the Sensex's 3.77% decline. The scrip had, however, outperformed the market in past one quarter, rising 0.02% as against Sensex's 7.89% fall.

The small-cap company has an equity capital of Rs 40.83 crore. Face value per share is Rs 10.

Mahindra Lifespace Developers said that the proposed qualified institutional placement (QIP) of equity shares is subject to approval of shareholders through a postal ballot process. The result of the postal ballot will be declared to the stock exchanges on 22 October 2013, the company said.

Mahindra Lifespace Developers' consolidated net profit rose 12.7% to Rs 21.77 crore on 45.6% increase in net sales to Rs 176.06 crore in Q1 June 2013 over Q1 June 2012.

Mahindra Lifespace Developers, the real estate and infrastructure development arm of the Mahindra Group, is a leader in sustainable urban development, through the creation of residential and integrated large format developments across nine Indian cities - Mumbai, Pune, Nagpur, Gurgaon, Faridabad, Jaipur, Chennai, Hyderabad and Bangalore.

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