Eraaya Lifespaces hits 5% upper circuit as Delhi HC removes fund-raise curb

Eraaya Lifespaces shares were locked in 5 per cent upper circuit on BSE at ₹28.89 per share. The buying on the counter came after the Delhi High Court cancelled an interim order that had previously restricted the company.

 

At 9:31 AM, Eraaya Lifespaces’ share price was trading 4.98 per cent higher at ₹28.89 per share on BSE. In comparison, the BSE Sensex was down 0.10 per cent at 85,479.36. 

 

The company has a total market capitalisation of ₹550.92 crore. Its 52-week high was at ₹159, and its 52-week low was at ₹19.75.   READ LATEST STOCK MARKET UPDATES LIVE 

The legal dispute, involving Vedas Opportunities Fund, had seen an earlier restraint order reinstated by an Appellate Court. However, on December 16, 2025, the Delhi High Court set aside that order and directed the Appellate Court to hear the case again and decide it quickly.

 

As a result, there is currently no legal restriction preventing the company from issuing or converting securities or receiving payments for them. The next hearing in the matter is scheduled for January 5, 2026.

 

“In view of the above, it is clarified that there is, as on date, no subsisting order or restraint operating against the company in respect of issuance or conversion of securities or receipt of consideration therefore, though the matter continues to remain sub-judice, and the company shall make further disclosures, if required, in accordance with applicable law,” the filing read. 

 

On May 7, 2025, Eraaya Lifespaces had informed that an investor, Vedas Opportunities Fund, had filed a civil suit against Eraaya Lifespaces in the Court of the Senior Civil Judge-cum-Rent Controller, Tis Hazari, Delhi, challenging a preferential issue approved at the company’s 58th AGM on September 28, 2024.  ALSO READ | Why did Emcure Pharma share price rise 2% in overall muted market? 

Vedas Opportunities Fund was an allottee in the company’s qualified institutional placement (QIP), receiving 26,200 equity shares of ₹10 each.

 

The Tis Hazari court subsequently passed an ex parte interim order restraining Eraaya Lifespaces from issuing compulsorily convertible warrants (CCWs) on a preferential basis, converting existing warrants, or receiving any funds that could dilute the plaintiff’s shareholding. 

 

Eraaya notes that this investor sold the entire QIP allotment in the market at a profit by January 2025, and only later made small open-market purchases. The company has dismissed the claims as "fabricated and baseless," labelling the investor's conduct as "speculative and mischievous,".