Man Infraconstruction zooms 12% on plans to raise funds; up 162% since Apr

The company said its board will meet on November 29 to consider the proposal for raising of funds by way of issue of one or more of instruments comprising of equity shares, etc.

Shares of Man Infraconstruction (ManInfra) hit a new high of Rs 178.95, as they rallied 12 per cent on the BSE in Thursday’s intra-day trade on the back of heavy volumes after the company said its board will meet on November 29 to consider a proposal for raising funds.

The stock of civil construction company was quoting higher for the fourth straight day, surging 24 per cent during the period. The average trading volumes at the counter more-than-doubled, with a combined around 5.9 million shares changing hands in first 15 minutes of trades on the NSE and BSE.

In an exchange filing, ManInfra said the board will consider the proposal for raising funds by way of issue of one or more of instruments comprising of equity shares, convertible securities of any other description or warrants or debt securities, through Private Placement/Preferential Issue/Qualified Institutions Placement or such other methods or combinations thereof as may be decided by the board.

ManInfra is headquartered in Mumbai having two business verticals viz., EPC (Engineering, Procurement and Construction) and Real Estate Development. As Real Estate Developer, ManInfra Group has delivered multiple Residential projects in Mumbai.

Since April, thus far in the financial year 2023-24, the stock price of ManInfra has zoomed 162 per cent on strong earnings. For the first half (April to September) of FY24 (H1FY24), the company had posted 65 per cent year-on-year (YoY) jump in consolidated profit after tax at Rs 152 crore, on the back of strong operational performance. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin improved 270 bps to 24 per cent from 21.3 per cent in a year ago quarter. Revenue, however, declined 4 per cent YoY to Rs 725 crore.

The launch of “Aaradhya Avaan” in October 2023, the most iconic project in South Mumbai with one of the tallest residential towers in India, is set to create new benchmarks in the real estate industry. The acquisition of two new projects at Goregaon West and at Ghatkopar East in Mumbai market during H1FY24, have now expanded the company’s real estate portfolio to 5.9 million square feet as on September 2023.

India is experiencing an upswing in real estate cycle which is likely to be long term and within that Mumbai’s real estate market is seeing a good demand as noticed from a surge in property registrations in last 10 months of 2023.

The management expects such momentum to continue not only because of better job stability and rising aspiration levels but also with better urban infrastructure on rise. With new project launches planned in second half of the financial year, the management expects to end the year on a strong note as the company continues to look out for future growth opportunities.