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Rai Saheb Rekhchand zooms on entering into JVA for project worth Rs 300 crore

10 Oct 2017 Evaluate

Rai Saheb Rekhchand Mohota Spinning & Weaving Mills is currently trading at Rs. 283.25, up by 26.55 points or 10.34% from its previous closing of Rs. 256.70 on the BSE.

The scrip opened at Rs. 263.00 and has touched a high and low of Rs. 300.75 and Rs. 263.00 respectively. So far 118715 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 300.75 on 10-Oct-2017 and a 52 week low of Rs. 47.00 on 22-Nov-2016.

Last one week high and low of the scrip stood at Rs. 300.75 and Rs. 245.00 respectively. The current market cap of the company is Rs. 420.32 crore.

The promoters holding in the company stood at 45.10%, while Non-Institutions held 54.90% stake in the company.

Rai Saheb Rekhchand Mohota Spinning & Weaving Mills (RSR) has entered into joint venture agreement (JVA) with Armors Developers for the multi-use development project with an estimate value of Rs 300 crore. The development project spread over-2 acres with total development targeted of 3,33,000 square feet will be completed over 18 months starting October 2017 through Special Purpose Vehicle (SPV).

The company has passed the resolution for setting up of a SPV for the development projects. The land is located in a posh area near Nagpur Metro Railway station Project which is expected to attract further investments from businesses and corporates.

RSR will only contribute land for the project and Armors would contribute towards development, marketing, administrative and selling expenditure. RSR would yield 45% of the total saleable value of the project estimated at Rs 300 crore at current market prices. The proceeds will be transferred from SPV to the balance sheet post the completion of the project and can be deployed for making the company debt free and cash rich in the medium to long term.


Mohota Industries Share Price

4.56 0.00 (0.00%)
22-May-2023 18:01 View Price Chart
Peers
Company Name CMP
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