Mahindra Lifespace shares soar 10% on Mahalaxmi redevelopment project; key details 

Shares of Mahindra Lifespace Developers Ltd soared 10 per cent in Wednesday's trade after the real estate and infrastructure development arm of the Mahindra Group partnered with Livingstone Infra Private Ltd for a cluster redevelopment project in Mahalaxmi, Mumbai, with a gross development value (GDV) of Rs 1,650 crore.
In another release, Mahindra Lifespace Developers said a material subsidiary of Mahindra Lifespace Developers executed a Lease Deed with Nihon Parkerizing India for a land admeasuring 18.92 acres at Thenmelpakkam Village, Chengalpattu District, Tamil Nadu.

Following the development, the stock rose 10.12 per cent to hit a high of Rs 343.20. The scrip hit a 52-week low of Rs 300.05 on March 17.

Managing Director & CEO Amit Kumar Sinha said the fresh development marked Mahindra Lifespaces’ strategic expansion into South Mumbai’s premium real estate market by creating residences that contribute to Mumbai’s urban renewal.

"The redevelopment aims to showcase cutting-edge design, sustainable elements, and premium amenities, enhancing the city’s skyline,” he said.

Located in the upscale Mahalaxmi area, the project site enjoys a prime position in one of South Mumbai’s most sought-after neighborhoods.

"A key advantage of the location is its exceptional connectivity, which ensures convenient access to major business districts, essential services, and leisure destinations across South Mumbai," Mahindra Lifespace Developers said.

HSBC in a March 5 note said the Mahindra Lifespace Developers management continued to see a decline in the affordable segment, which is compensated for by growth in premium segment.

"They believe that inventory levels are healthy at 14 months and the levels which would signify slowdown will be 30-36 months. It indicated that pricing is now stabilising at 5 per cent growth for Mumbai and still growing for Bangalore at 10 per cent levels. It also indicated that launches are also picking up after delays earlier on account of elections and other issues," HSBC said.

The foreign brokerage noted that the management indicated that it generally targets
18 per cent IRR but the current target for its projects is 20 per cent. The company wants to keep its debt to equity at 0.5 times and may look to raise external capital or capital from the parent, HSBC noted.