Shares of Shriram Properties Limited surged 5 per cent to hit a day's high of Rs 77.75 on BSE after the company announced that it has completed the acquisition of 100 per cent of the equity in Suvilas Realities Private Limited, through its wholly-owned subsidiary, Shriprop Builders Private Limited.
At 10:10 hours, the shares were trading 3.79 per cent higher at Rs 76.75 on BSE. Market cap of the firm rose to Rs 1304.4 crore.
Suvilas Realities is currently developing a 0.65 million square feet (“msf”) residential project on 6.9 acres of land located at Jalahalli, Bengaluru, under the brand name “Shriram Suvilas Palms.
"The Project was being developed under the development management arrangement with Shriram Properties and the existing promoters desired to monetise at the early stage," the company said.
SPL saw the opportunity given the location and the significant potential and secured the project through the company acquisition, it added.
Commenting on the development, Murali M, CMD, Shriram Properties said, “The acquisition is value accretive for our stakeholders and will remain focused on unlocking value expeditiously. The acquisition will help us in gaining full control of both projects and we will remain focused on accelerated execution and timely delivery of quality projects to our customers.”
In an independent transaction, Shriram Properties has acquired another project from Suvilas, namely the Shriram Suvilas Garden of Joy, comprises 152 units with an aggregate saleable area of approx 0.2 msf and being developed on a 2-acre land parcel located in Jalahalli.