1 week ago
Nitco Shares Rise After Alibaug Land Development Deal
Nitco made a deal to develop some land in Alibaug, Maharashtra.
Its subsidiary signed the agreement with a company from the House of Abhinandan Lodha group.
The land is in the villages of Thal and Lonare.
Nitco expects the deal to bring in between Rs 1,300 crore and Rs 1,500 crore over five years.
It has already received Rs 9 crore as a security deposit.
After the announcement, Nitco’s share price rose sharply before giving back some of the increase.
The final agreements still depend on certain conditions and possible regulatory approvals.
Nitco said the partner does not own shares in the company or have special control rights.
Nitco shares climbed 13.5% to an intraday high of Rs 109.25 after its subsidiary announced an Alibaug land development MoU.
Nitco Realties signed the agreement with HOABL Impactum Land Private Limited, part of the House of Abhinandan Lodha group.
Nitco expects to receive approximately Rs 1,300 crore to Rs 1,500 crore over five years and has received a Rs 9 crore security deposit.
The agreement covers land parcels in Thal and Lonare villages in Alibaug Taluka, Raigad district.
Nitco said HOABL owns no shares in the company and has no special governance rights, so the deal is not a related-party transaction.
- Who
- Nitco, its wholly-owned subsidiary Nitco Realties Private Limited, promoter Vivek Talwar, and HOABL Impactum Land Private Limited.
- What
- They signed a memorandum of understanding to jointly develop Nitco-linked land parcels in Alibaug.
- Where
- The land parcels are in Thal and Lonare villages in Alibaug Taluka, Raigad district, Maharashtra.
- When
- The MoU was signed on August 24, and Nitco shares rose on Tuesday, August 25.
- Why
- Nitco expects the development transaction to generate approximately Rs 1,300 crore to Rs 1,500 crore over five years.
Nitco's Position
Transaction Considerations
Financial potential
Nitco's Position
Nitco expects the land development transaction to generate approximately Rs 1,300 crore to Rs 1,500 crore over five years.
Transaction Considerations
The expected proceeds are not yet realized because final agreements remain subject to conditions and possible regulatory approvals.
Relationship between the parties
Nitco's Position
Nitco says the deal is not a related-party transaction because HOABL owns no Nitco shares and is not connected with its promoter group or group companies.
Transaction Considerations
The agreement includes Nitco, its subsidiary, and promoter Vivek Talwar granting development rights to HOABL, creating a transaction involving both company and promoter-linked parties.
Key facts
- Share price move
- Nitco shares rose 13.5% to an intraday high of Rs 109.25, later trading 5.35% higher at Rs 101.43.
- Expected proceeds
- Nitco expects approximately Rs 1,300 crore to Rs 1,500 crore over five years.
- Security deposit
- Nitco received Rs 9 crore by cheque as a security deposit.
- Agreement date
- The memorandum of understanding was signed on August 24.
- Development partner
- HOABL Impactum Land Private Limited, part of the House of Abhinandan Lodha group.
- Land location
- Thal and Lonare villages in Alibaug Taluka, Raigad district, Maharashtra.
- Transaction status
- Final agreements and other documents will be signed after conditions are met and any required regulatory approvals are received.
Sources
Related news
NITCO, HoABL Plan ₹4,500 Crore Alibaug Mixed-Use Project
House of Abhinandan Lodha Plans ₹1,000 Crore Alibag Project
Birla Estates Unit Secures Rs 159 Crore Mumbai Development Deal
Stocks in News: Gaja Debut, Block Deals, New Orders
Indian stocks surge on realty deals, pharma approvals, rail contracts
Stocks to Watch Thursday as Key Corporate Developments Drive Focus
Jarange Accuses Maharashtra Government of Inciting Riots During Fast
Mumbai Trains Election Officials Amid Statewide Electoral Roll Revision
Bombay Gymkhana Squash Finals Set After Junior Semifinals
NMMC Launches Navi Mumbai Drive to Protect Existing Trees
