Puravankara surges after exiting from investment in AP

Puravankara jumped 6.42% to Rs 68.80 at 14:35 IST on BSE after the company said that it has successfully exited from the investment of Rs 403 crore at Raidurg, Panamaktha village, Ranga Reddy district in Andhra Pradesh.

The announcement was made during market hours today, 28 March 2017.

Meanwhile, the S&P BSE Sensex was up 170.03 points, or 0.58% to 29,407.18.

On the BSE, 83,857 shares were traded in the counter so far, compared with average daily volumes of 68,930 shares in the past one quarter. The stock had hit a high of Rs 69.10 and a low of Rs 64.50 so far during the day. The stock had hit a 52-week high of Rs 70.40 on 24 March 2017. The stock had hit a 52-week low of Rs 37.20 on 22 November 2016.

The stock had outperformed the market over the past one month till 27 March 2017, gaining 24.69% compared with the Sensex's 1.47% rise. The scrip had also outperformed the market over the past one quarter, gaining 44.63% as against the Sensex's 11.53% rise.

The small-cap company has equity capital of Rs 118.57 crore. Face value per share is Rs 5.

Puravankara said that the company has received in aggregate of Rs 475 crore in the transaction with an unrelated third party in an arm's length transaction. Consequent to the transaction, the company has transferred the entire shares in three wholly owned subsidiaries to the unrelated third party.

The transaction was enabled by a resolution passed by the board of directors on 21 March 2017, to exit from the investment of Rs 403 crore at Raidurg, Panamaktha Village, which would involve the sale of its entire shares in three wholly-owned subsidiaries of Puravankara. The transaction has been authorized on a condition that total inflow should not be less than a sum of Rs 475 crore.

On a consolidated basis, net profit of Puravankara rose 15.3% to Rs 20.09 crore on 29.1% decline in net sales to Rs 268.86 crore in Q3 December 2016 over Q3 December 2015.

Puravankara is a real estate company. The company has operations in Mumbai, Bangalore, Kochi, Chennai, Coimbatore, Hyderabad, Mysore and overseas in Dubai, Colombo and Saudi Arabia.

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