 "Arkade Developers share gains 6% as company bags Rs 165 crore-land deal")
Shares of residential and commercial projects developer Arkade Developers were buzzing in trade on Wednesday, January 29, 2025. The company's share price advanced 6.05 per cent to an intra-day high of Rs 154.75 on the National Stock Exchange (NSE) during the intra-day trade.
The northward move in the company’s share price was fueled by the news that it had completed the acquisition of a prime land parcel located in Goregaon West, in the western suburbs of Mumbai, from Aspen Properties and their joint venture partners, Kamanwala Housing Construction, for a total consideration of Rs 165 crore and paid the stamp duty of Rs 9.9 crore.
The project, Arkade Developers said, will feature a modern luxury development with an approximate saleable area exceeding 5 lakh square feet, contributing an estimated revenue of Rs 2,000 crore.
"The acquired property, currently the site of a historic studio, carries a legacy of cinematic significance. With a sprawling plot area of approximately 16,200 square meters (4 acres), this acquisition is poised to unlock significant value in one of Mumbai's most sought-after locations," said Arkade Developers in a release.
Commenting on the acquisition, Amit Jain, chairman and managing director of Arkade Developers, said, “This land parcel holds a special place in the hearts of Mumbaikars, evoking memories of a bygone era. Amongst the last few remaining pristine plots in western Mumbai, it presents a unique opportunity to craft a landmark development."
Arkade Developers is a real estate developer with a legacy spanning over three decades, renowned for crafting luxurious residential and commercial properties with a significant presence in Mumbai. The company operates its business in two segments: the development/construction of residential buildings on land acquired by the company (new projects) and the redevelopment of existing buildings (redevelopment projects).
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Arkade Developers enjoys a market capitalisation of Rs 2,853.65 crore. The company’s shares have a 52-week range of Rs 190–128.15 on the NSE.
Shares of Arkade Developers listed on September 24, 2024, at Rs 175 apiece on the NSE, against the IPO issue price of Rs 128.
At around 12:16 PM on Wednesday, the residential and commercial projects maker’s shares were quoted at Rs 153.70 apiece, up 5.33 per cent from the previous close of Rs 145.92 on the NSE. A combined total of nearly 1 million equity shares, estimated to be worth around Rs 14.93 crore, had exchanged hands on the NSE and BSE.
Meanwhile, the benchmark equity indices, BSE Sensex, were at around 76,398.56 levels, higher by 497 points, and Nifty50 was at 23,121.15, up 0.83 percent.