Ajmera Realty shares fell 4 percent in trade on March 6 after the real estate major bagged credit facilities of Rs 500 crore.
The firm secured credit facilities totaling Rs 500 crore from Standard Chartered Bank and ICICI Bank. According to a filing with the bourses, the funds will be used for the execution of Ajmera Manhattan, a luxurious residential project in mumabi's Wadala neighbourhood.
A sum of Rs 200 crore has been used towards the partial prepayment of the GCP loan availed from HDFC Bank, the realtor said.
At 1 pm, Ajmera Realty stock was quoting Rs 703.3 on the BSE, down 2.8 percent from the previous session.
Follow our market blog to catch all the live updates
The Ajmera Manhattan project sold 60 percent of its inventory as of December 2023. "The demand for the project remains strong, driven by the exponential growth in housing demand along the Sewri-Wadala belt, largely attributed to the recent launch of the Mumbai Trans-Harbour Link," the company said.
The cost of completion is already covered by the pre-sales balance receivables. "Through this structured deal, the company has advanced the partial prepayment of the GCP loan ahead of its schedule. Consequently, the project loan repayment is expected to align more closely with project cash flows," said the firm.
Ajmera Realty also secured this deal at a lower cost of funds compared to prevailing rates with the existing lender.
Over the past six months, the stock has gained around 90 percent. In comparison, the frontline Nifty gained 14 percent.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
