Share Price of This Luxury Housing Company Jump Over 5% After Rs 2,100 Crore Redevelopment Win in Mumbai; FIIs Increase Stake

Puravankara Ltd shares surged 5.30 per cent to Rs 298.10 in early trade on July 7 after the company announced a significant redevelopment deal in Mumbai. The stock opened at Rs 286.15 and hit a high of Rs 303.75. With a market capitalization of Rs 7,069.4 crore, Puravankara is currently trading well below its 52-week high of Rs 536.00 but above the 52-week low of Rs 205.05.

The real estate developer has been selected to redevelop eight residential societies in Chembur, Mumbai, with a total gross development value (GDV) of Rs 2,100 crore. The project covers over 1.2 million square feet across approximately 4 acres. This new mandate adds to Puravankara’s recent redevelopment wins in Breach Candy, Pali Hill, and Lokhandwala, indicating its deepening presence in Mumbai’s urban transformation initiatives.

Commenting on the strategic announcement, Ashish Puravankara, Managing Director, Puravankara Limited, said, “Securing marquee redevelopment projects in highly sought-after Mumbai neighbourhoods such as Breach Candy, Pali Hill, Lokhandwala, and now Chembur is a strong validation of the trust, discerning societies and residents place in the Puravankara brand. What distinguishes us is not just our vision, but also our design-led approach and unwavering focus on quality.

Now with 11 projects across Mumbai and Pune, spanning approximately 14 million square feet, including 3.6 million square feet in redevelopment, we are committed to strengthening our footprint in the western region. The region is expected to contribute a GDV of approximately Rs 18,000 crore, of which approximately Rs 7,700 crore will come from redevelopment alone.”

Rajat Rastogi, CEO-West and Commercial Assets, Puravankara Limited, added, "We are honoured to be selected as the developer to redevelop eight societies in Chembur. After receiving a phenomenal response for our existing project in Chembur (Purva Clermont), our expansion in this micro-market will strengthen our footprint further. As we celebrate our Golden Jubilee year, this achievement not only reinforces our position as a trusted partner in the redevelopment space but also strengthens our presence in Mumbai’s vibrant and competitive real estate market. We remain committed to driving innovation and delivering value to all stakeholders, residents, partners, and the communities we serve."

Despite strong long-term returns, the stock has seen volatility. Over a three-year period, it delivered 243.62 per cent returns. However, it is down 43.63 per cent over the last year and 21.73 per cent year-to-date. In the past three months, the stock gained 31.69 per cent.

Puravankara has completed over 90 projects totaling around 53 million sq ft and holds a land bank of approximately 25 million sq ft. Its portfolio includes residential, plotted developments, and commercial assets, alongside verticals such as interior design and construction through subsidiaries like Purva Streaks and Starworth Infrastructure. Foreign Institutional Investors (FIIs) have shown increased confidence in the company by raising their stake from 17.24 per cent to 17.33 per cent

Disclaimer: The article is for informational purposes only and not investment advice.