Ajmera Realty share price jumps 9% after allotment of stocks to Mukul Agrawal worth ₹54 crore

Ajmera Realty & Infra India stock surged by 9% to ₹874.70 apiece in today’s afternoon trade deals after the company disclosed key developments from its board meeting held on October 18, 2024.

In a regulatory filing today, the company announced that its Board has approved the issuance and allotment of 3,164,557 equity shares at an issue price of ₹711 each. Subject to shareholder and regulatory approvals, this preferential allotment is expected to generate around ₹225 crore.

The filing shows that the company has allotted 759,493 shares, valued at around ₹54 crore, to ace investor Mukul Mahavir Agrawal. 

"The company approved the issue and allotment of 31,64,557 (thirty-one lakhs, sixty-four thousand, five hundred and fifty-seven) equity shares, having a face value of ₹10 per equity share, to identified allotees (more particularly described in Annexure 1 of this outcome) on a prefential basis at an issue price of ₹71 per equity share, aggreging ₹225 crore for cash, subject to the shareholders' approval and other statutory approvals," the company said in today's exchange.

The company's Extra-ordinary General Meeting (EGM) is scheduled for November 14, 2024, to seek approval from the members for the proposed issue and allotment of 31,64,557 equity shares on a preferential basis.

The company's shares have made notable gains on Dalal Street in recent sessions, particularly following the release of its business update for the September quarter. In Q2 FY25, the company reported sales of ₹254 crores, reflecting a 1% year-on-year increase. Notably, collections surged by 20% year-on-year to Rs133 crores, signaling enhanced operational efficiency and strong customer demand.

The response to the company's luxury offerings, Ajmera Manhattan and Ajmera Prive, has been impressive, demonstrating strong interest in premium properties. Additionally, Ajmera Vihara in Bhandup, launched last quarter, is already 49% sold, according to the company.

The company has significant development potential with its remaining land parcels at Ajmera I-Land, Bhakti Park, Wadala, and Central Mumbai. Current projects include “Manhattan,” “Prive,” and “Eden” in Mumbai, as well as “Ajmera Lugaano” and “Ajmera Florenza” in Bengaluru. The company is dedicated to premium developments in both luxury and mid-luxury segments within the residential market.

Stock up nearly 1000% in 4 years

Over the past four years, the company's shares have soared from ₹81.50 to the current trading price of ₹869, marking an impressive gain of 970%. This month alone, the stock has surged by 29%, representing its largest monthly increase since January 2024.

In terms of yearly performance, the stock has risen by 97% this year, the most significant annual gain since 2021, when it achieved a return of 99%.

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