Gurugram, August 29, 2024 – Anant Raj Limited, a leading player in real estate development, announced the acquisition of Sheetij Properties Private Limited, a real estate company holding approximately 11.35 acres of prime land in Sector 63A, Gurugram, Haryana. The acquisition was completed through the purchase of the entire stake in Sheetij Properties, further enhancing Anant Raj’s land holdings in this strategic location.
Strategic Objectives and Impact of the Acquisition
The acquisition of Sheetij Properties is part of Anant Raj Limited’s ongoing efforts to expand its footprint in the lucrative Gurugram real estate market. The land held by the target company, in partnership with Fortunea Infrastructure LLP, will be a significant addition to Anant Raj Estate, one of the largest development projects in Sector 63A. By securing 100% ownership of Sheetij Properties, Anant Raj Limited is poised to capitalize on the growing demand for residential real estate in Gurugram. The additional land will boost the company’s development potential and contribute to its long-term growth strategy.
Financial Details of the Acquisition
Anant Raj Limited has acquired 1,000 equity shares of Sheetij Properties, each priced at ₹10, for full ownership. In addition to this, the company will extend an inter-corporate loan of ₹42 crores to Sheetij Properties, with provisions for additional funds as needed. The acquisition was completed through a cash transaction, with no requirement for share swaps.
Immediate Benefits and Development Plans
The newly acquired land is located in the highly sought-after Sector 63A, where Anant Raj Limited already has an established presence. This acquisition positions the company to enhance its residential development portfolio in the region. With an immediate timeline for completion, the company expects this move to significantly increase its land bank, allowing for greater flexibility in the execution of its development projects.
Market Reaction
Despite the positive long-term prospects of the acquisition, Anant Raj Limited’s stock saw a decline of 1.48% today, closing at ₹600.20. However, the company has been a remarkable performer in the stock market, delivering multi-bagger almost 100 times returns from its April 2020 low of ₹6.35 per share. The decline in stock price, reported after the market hours, may reflect short-term investor concerns but is unlikely to impact the company’s robust growth trajectory in the long run.
Regulatory Approvals and Timeline
No governmental or regulatory approvals were required for this acquisition, as confirmed by the company. The acquisition has been completed immediately, with the transfer of shares and financial arrangements in place.
This strategic acquisition is expected to bolster Anant Raj Limited’s standing in the Gurugram real estate market, solidifying its reputation as a leading developer in the region.
Complete details can be found here.
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