GOCL Corporation shares surge 6% in trade; what's fueling the rally?

Shares of explosive products maker GOCL Corporation were buzzing in trade on Thursday, September 4, after the company announced updates on the monetisation of its land in Kukatpally, Hyderabad. The company’s shares jumped 5.6 per cent to ₹384 per share during intraday deals on the NSE.

 

Although the stock witnessed some profit booking, it continued to trade northward on the bourses. As of 1:36 PM, GOCL Corporation shares were trading at ₹369.35 per share, up 1.44 per cent from the previous close of ₹364.10. A combined total of approximately 0.12 million equity shares, estimated to be worth around ₹4.50 crore, changed hands on the NSE and BSE by that time.

 

GOCL Corporation land monetisation update

GOCL Corporation informed the exchanges that the monetisation of about 142 acres out of 264.50 acres of land situated at Kukatpally, Hyderabad, has been completed. Notably, the monetisation of the entire land parcel was originally expected to be completed by September 2025, as per an earlier exchange filing submitted by the company on March 27, 2024.

 

The company further said, “By way of mutual consent between the Company and Squarespace Builders Private Limited, the timeline for completion of the sale of the balance land has been extended up to August 2026.”

 

Earlier on March 27, 2024, the company had informed the exchanges that it had entered into a Memorandum of Understanding (MoU) with Squarespace Infra City Private Limited, Hyderabad, for the monetisation of approximately 264.50 acres of land situated at Kukatpally, Hyderabad, of which 32 acres is under a Joint Development Agreement (JDA).

 

The monetisation is to take place over a period of 18 months in tranches, subject to the fulfilment of certain covenants.

 

“Out of the aforesaid 264.50 acres, immediate sale of 12.50 acres of land, which is under a Joint Development Agreement (JDA) with Hinduja Estates Private Limited (now known as Hinduja Healthcare Limited - HHL), will take place. The total consideration for the entire land under the MoU will be ₹3,402 crore,” the company had stated in the filing.

 

GOCL Corporation (formerly Gulf Oil Corporation) is one of the largest manufacturers of explosives in India. The company manufactures cartridges and bulk explosives for use in mining and infrastructure projects. The company has a market capitalisation of ₹1,844.10 crore on the NSE.

 

GOCL Corporation shares have a 52-week range of ₹489 – ₹245 on the NSE.

 

The stock has declined nearly 2 per cent year-to-date, in contrast to the benchmark Nifty50, which has advanced nearly 4 per cent during the same period.