Small-cap realty gem: Secures Rs 500 crore financing boost from Standard Chartered Bank and ICICI Bank
The stock has witnessed significant buying activity as it has given multibagger returns of more than 155 per cent in the last 1 year
Ajmera Realty and Infra India Limited has secured Rs 500 crore in credit facilities from Standard Chartered Bank and ICICI Bank. These funds will be used for the Ajmera Manhattan residential project in Wadala, Mumbai, with Rs 200 crore being allocated for partial prepayment of the HDFC Bank loan.
The Ajmera Manhattan project has seen strong booking activity, with over 60 per cent of inventory sold by December 2023, and aims for green building certification. Demand is driven by housing demand along the Sewri-Wadala belt, boosted by the Mumbai Trans-Harbour Link.
Management comment:
On the occasion Dhaval Ajmera, Director of Ajmera Realty & Infra India Ltd, said “This structured deal represents a strategic step forward in maintaining our unwavering dedication to our company’s objectives. Ajmera Manhattan’s exceptional performance has enabled us to secure this deal at more favorable commercial terms. The successful execution of this deal highlights our company's financial reliability and creditworthiness, reinforcing our commitment to achieving our 5x growth vision.”
Impact on shareholders:
The infusion of liquidity boosts investor confidence in the company's financial stability. Allocation of funds ensures timely project execution, attracting more investors and maintaining positive sentiment. Additionally, utilization of Rs 200 crore for loan prepayment reduces debt burden, enhancing profitability.
Furthermore, strong bookings for the Ajmera Manhattan project reinforce investor trust and promise revenue growth. The project's strategic positioning, focusing on green certification and prime location, aligns with market trends, enhancing its appeal.
These developments underscore the company's commitment to growth and value creation, potentially driving positive momentum in stock price and shareholder value.
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About company:
Established in 1985, Ajmera Realty and Infra Limited (ARIIL) specializes in offering residential and commercial properties for sale and rent. With a widespread presence in cities like Mumbai, Bengaluru, and Ahmedabad in India, as well as overseas locations including Bahrain and the UK, the company caters to diverse real estate needs.
Furthermore, the stock has witnessed significant buying activity as it has given multibagger returns of more than 155 per cent in the last 1 year.
Today, the shares of Ajmera Realty & Infra India Limited plunged 0.81 per cent. The company's current market capitalisation is Rs 2,580.81 crore.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.