Oberoi Realty Successful Bids 25 Acres Of Tata Steel Land

India’s leading real estate development company, Oberoi Realty has emerged as a highest bidder on the basis of their final bid of Rs 1155 crore after several rounds of bidding at the auction of about 25 acres (1089000 sq ft) of land parcel owned by Tata Steel. 

The land is located at the junction of Western Express Highway and Dattapada road in Borivali (E), Mumbai and is adjacent to both the roads. The neighbourhood predominantly comprises of medium to high-end residential developments. As per the laid down process, the sale will be concluded after all requisite permissions are obtained.

It is expected that the company will use the land for making premium residential projects. As per market sources, even after the construction is completed, approximately 4 million sq ft of area will be available for sale. At present, per sq ft price in Western Express Highway and Dattapada road in Borival locality is hovering around Rs 12000 and expected to rise up in future. 

Oberoi Realty is fundamentally strong and sitting on strong cash reserves of Rs 478 crore as on H1FY14. It has almost zero debt burdens on its balance sheet and operating at profitability margin around 40% as on Q3FY14. 

The company performance during 9MFY14 is not up to the mark due to sluggish economic growth and tight monetary policies. The company has recorded a decrease of 22% in its topline to Rs.578 crore in 9MFY14 against Rs. 743 crore in 9MFY13while bottomline showed a decrease of 35% to Rs 234 crore.

After the announcement the company has recorded a growth of 16% in its stock prices in early morning session. Currently its stock is trading at 19 times of trailing 12-months earning with an increase of 8.24% over its previous close.