Nitesh Estates surges as Fosun plans to invest Rs. 800 crore

High-end Realtor, Nitesh Estates zoomed on Thursday on the back of a news report that Chinese conglomerate Fosun may buy around 50 per cent stake in the company for Rs. 800 crore. The stock was up nearly by 20 per cent. The stock of Nitesh Estates was locked in upper circuit at Rs. 15.93 per share, up Rs. 2.65 or 19.95 per cent following the buzz.

The exchanges had asked the company for clarification on the news item on Thursday. In a prompt response, the company said in a filing that it is contemplating multiple capital raising deals and can neither rule out or confirm and deal until anything definitive emerges.

Earlier, in 2017, the Fosun had expressed that it aims to invest $100 million in India in the calendar year. This would be the company's foray into the Indian real estate industry. The Group has a presence in premier properties across top cities in the world. In October, Fosun Group's subsidiary, Fosun Pharma acquired upto 74 per cent stake in Gland Pharma for US$ 1.09 billion.

The investment in Nitesh Estates will aid the company to reduce debt and also built on its commercial rental assets across the country.