Arshiya hits 52-week high

Arshiya has entered into a binding term sheet with Ascendas Property Fund Trustee (APFT) to acquire six warehouses. The share price of the company increased 4.58 per cent in early trade, and is trading at Rs 81 on an intraday basis. It has traded on new 52-week high at Rs 81.

Arshiya has a total of 8.32 lakh square feet of warehouses at its Free Trade & Warehousing Zone (FTWZ) located at Panvel, near Mumbai. The company has objective to achieve an asset light model going forward, while Ascendas will potentially be getting a portfolio of income yielding Free Trade warehouses.

The binding agreement also envisages the financing related to the future development of the available surplus land, which has development potential of approximately 4 million square feet within the existing notified area. Arshiya will receive amount of Rs 534 crore, out of which Rs 434 crore upon signing of a definitive agreement and the balance Rs 100 crore over four years on achieving certain milestones.

Arshiya will use proceedings for clearing a part of its dues to creditors, and for repayment of other liabilities post debt restructuring.