Here's what triggered 8% rally in Dhani Services; stock up 17% in 3 days

Shares of Dhani Services rose over 8 per cent on Thursday after the company signed a Memorandum of Understanding (MoU) to acquire additional land in Gurgaon, to develop real estate projects. 

 

Dhani Services' stock rose as much as 8.15 per cent during the day to Rs 64.2 per share, the biggest intraday gain since February 19 this year. The stock pared gains to trade 7.16 per cent higher at Rs 63.6 apiece, compared to a 0.64 per cent advance in Nifty50 as of 9:44 AM. 

 

Shares of the company extended gains to their third-day while they have fallen 32 per cent this year, compared to a 2.57 per cent fall in the benchmark Nifty50. In the last three session, the stock has gained as much as 17 per cent. Dhani Services has a total market capitalisation of Rs 3,834.1 crore, according to BSE data.

 

 

In an exchange filing on Wednesday, the company said it executed an MoU with certain land owners for 5.37 acres in Sector 104, Gurgaon. This will be used to develop real estate projects, and will be subject to registration with Real Estate Regulatory Authority and other applicable regulatory approval.  

 

This MoU will expand the company's 100% owned ongoing project 'Indiabulls Estate & Club' in Sector 104, Gurgaon from 24 acres to 29.37 acres, according to the exchange filing. The total development on 29.37 acres will be 70.8 lakh square feet, with an expected revenue of Rs 12,065 crore at current prices, it said.

 

Dhani Services, formerly known as Indiabulls Ventures Limited is one of India's leading capital market companies providing securities and derivative broking services. The company is registered with SEBI as Stock Broker Depository Participant Research Analyst and Merchant Banker in Category I. 

 

Earlier this year, the company's board has approved raising of funds up to Rs 406.35 crore through issue of warrants convertible into fully paid-up equity shares. The company reported net profit of Rs 15.91 crore in Q2FY25 as against net loss of Rs 105.49 crore in Q2FY24. Total income rose 0.4% Year-onYear (Y-o-Y) to Rs 113.24 crore in Q2FY25.

 

Dhani in FY24 annual report said that the company has submitted building plans to the office of Directorate of Town & Country Planning (DTCP) for approvals of approximately 1.1 mn sq ft of residential development saleable area in Sector 104, Gurugram, and for development of saleable area of approximately 0.26 mn sq.ft. of office space in Worli, Mumbai.