Phoenix Mills share gains over 1% after CLSA raises target price

Phoenix Mills share price rose over 1% in Friday's early trade after brokerage firm CLSA gave a 'buy' call on the stock and raised the target to Rs 790 per share from the previous Rs 742.

Following the updates, Phoenix Mills stock opened at Rs 652.90 and touched an intraday high of Rs 654.35, rising 1.48% on BSE. The stock price of Phoenix Mills also hit low of Rs 646.05 intra day.

Phoenix Mills stock price trades higher than 20, 50 and 100 day but lower than 5 and 200-day moving averages. Shares of Phoenix Mills has risen 10.86% in one month. Market capitalisation of the firm stood at Rs 11,103 crore as of today's session.

The company raised Rs 1,100 crore through a qualified institutional placement, which was open for subscription between August 18 till August 21.

ICICI Prudential Mutual Fund, SBI Mutual Fund and Aditya Birla Sun Life Mutual Fund had participated in the QIP. Besides these, the Government of Singapore bought 74,38,017 shares for around Rs 450 crore, contributing almost 41% to the proceeds.

CLSA in a note said it remained positive on the value potential of recent equity raise. It added the funds will aid in building a new project pipeline and the funds will be utilised for acquiring new projects.

"Equity raise of Rs 1,100 crore in this environment is testimony to Phoenix Mills' strong asset portfolio," it added.

The brokerage is positive on the value potential of this capital raise and says it help in building a robust project pipeline. Funds will be utilised to acquire new projects.

HDFC Securities also maintained a 'buy' call on Phoenix Mills with a target price of Rs 828 and said," In the long run, it holds the potential for significant cash-flow distribution and growth. Near-term headwinds remain, but current prices provide quality at a reasonable price."

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