Quant Mutual Fund bought 7,14,053 shares & Rs 1,100 crore order book: This explosive company signs MoU worth Rs 3,402 crore with Squarespace Builders Pvt Ltd

An ace investor, Dilipkumar Lakhi owns a 1.22 per cent stake in the company and Quant Mutual Fund bought 7,14,053 shares or 1.44 per cent stake in the company as of December 2023.

Today, the stock market started the day in green with the BSE Sensex Index up by 0.43 per cent and the NSE Nifty-50 Index up by 0.41 per cent. Along with the market in green, shares of GOCL Corporation Limited hit a 20 per cent upper circuit to Rs 453.35 per share from its previous closing of Rs 377.80 in the pre-opening session. The shares of the company saw a spurt in volume by more than 2 times on BSE.

GOCL Corporation Limited has signed a Memorandum of Understanding (MoU) with Squarespace Builders Private Limited, located in Hyderabad, to monetize a large piece of land. This land is approximately 264.5 acres and is situated in Kukatpally, Hyderabad. The agreement outlines a plan to sell this land in phases, or tranches, over 18 months. However, before any sales take place, certain conditions (known as covenants) must be met by all parties involved.

Here's a breakdown of the land and the sale strategy:

• Total Land: 264.5 acres
• Monetization Plan: The land will be sold in phases over 18 months.
• Conditions: The sale of each phase is subject to meeting specific requirements (covenants).

Joint Development Agreement (JDA): There's a special arrangement for 32 acres out of the total 264.5 acres. This specific portion will be developed jointly with another company, Hinduja Estates Private Limited, which has since been renamed Hinduja Healthcare Limited (HHL).

Immediate Sale: Interestingly, the agreement includes the immediate sale of a 12.5-acre portion of the JDA land (the 32 acres with Hinduja Healthcare). This means this specific piece of land won't be part of the phased sale over 18 months.

Financial Details: The total value of the entire 264.5 acres of land is estimated at Rs. 3,402 crores. Upon signing the MoU, an initial payment of Rs. 520 crores will be received. Here's how that breaks down:

• Rs. 160 crores: This is the payment for the immediate sale of the 12.5-acre JDA land.
• Rs. 360 crores: This amount will be held by the company as an advance payment for future land sales within the 18-month timeframe.

In simpler terms, the company is entering a deal to sell a large piece of land in phases. There's a special agreement for a smaller portion that involves joint development with another company. Additionally, a significant portion of the land sale value will be received upfront, with the rest coming in over the next year and a half.

GOCL Corporation Ltd is engaged in the business of energetics, mining & infrastructure services and realty. It is a part of Hinduja Group which has a presence across various industries such as Automotive, information technology, media, entertainment & communications, infrastructure projects, development, oil & speciality chemicals, power, real estate and healthcare. GOCL Corporation Ltd has a market cap of over Rs 2,700 crore and the order book stands at Rs 1,100 crore.

An ace investor, Dilipkumar Lakhi owns a 1.22 per cent stake in the company and Quant Mutual Fund bought 7,14,053 shares or 1.44 per cent stake in the company as of December 2023. The stock is up by 59 per cent from its 52-week low of Rs 284.80 per share. Investors should keep an eye on this Small-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.