Shares of Shriram Properties Ltd saw a 5 percent intraday surge on the BSE, on Tuesday, following the company's announcement of the strategic sale of a 3.9-acre land parcel in Chennai.
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The land has been sold to a prominent South Indian healthcare and educational group and is strategically located on GST Road that holds significant potential for retail or commercial development. While currently approved for retail space, Shriram Properties, focusing on residential development, decided to monetise this non-core asset.
"This transaction aligns with our strategy of concentrating on residential projects, particularly in the mid and mid-premium segments," stated Shriram Properties. "Proceeds from this sale will fuel future growth." CMD Murali M emphasized the importance of this deal in unlocking value from non-core assets and optimizing capital allocation.
As per CNBC-TV18, Shriram Properties is aiming to expand its portfolio significantly with plans to add 20 million square feet of new inventory over the next six years. Key growth drivers are expected to be projects in Chennai, Bengaluru, Kolkata, and Pune.
Recently, the company also received approval from the Securities and Exchange Board of India (SEBI) for the indirect acquisition of Shriram Properties by its Chairman and Managing Director, Murali Malayappan. SEBI's exemption order issued was the confirmation on this acquisition not making any changes to the company's control, with the promoter and promoter group maintaining a 27.94 percent stake.
Shriram Properties swung to a net loss of Rs 0.99 crore in the September quarter of FY 2025, compared to a Rs 20.15 crore profit in the same period last year. Revenue also declined sharply by 31.8 percent to Rs 141 crore.
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