Ajmera Realty witnessed a 4% decline in its shares on March 6 following the announcement of securing credit facilities worth Rs 500 crore.
The real estate company successfully obtained credit facilities from Standard Chartered Bank and ICICI Bank for its Ajmera Manhattan project, a luxurious residential venture located in Mumbai’s Wadala neighborhood.
A portion of the funds, amounting to Rs 200 crore, has been utilized for the partial prepayment of the GCP loan obtained from HDFC Bank, as disclosed in a filing to the stock exchanges.
As of December 2023, the Ajmera Manhattan project has sold 60% of its inventory, reflecting strong demand driven by the surge in housing demand along the Sewri-Wadala belt, particularly attributed to the recent launch of the Mumbai Trans-Harbour Link.
The company highlighted that the cost of completion is already covered by the pre-sales balance receivables. Furthermore, the structured deal allows for the early partial prepayment of the GCP loan, aligning the project loan repayment more closely with project cash flows.
Ajmera Realty secured the credit facilities at a lower cost of funds compared to prevailing rates with the existing lender.
Despite the recent dip, Ajmera Realty’s stock has witnessed a significant 90% increase over the past six months, outperforming the frontline Nifty index, which gained 14%.
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