Shares of Brigade Enterprises surged more than 6% in the early trading hours on Monday after the realty firm announced that it had inked Memorandums of Understanding (MoUs) with the Tamil Nadu government, pledging an investment of over Rs 3,400 crore.

Shares of Brigade Enterprises hit a lifetime high of Rs 1,000, up 6.4% from the previous closing price on the National Stock Exchange (NSE). At 11:20 am, the stock was trading 3.6% higher at Rs 987.

In an exchange filing dated January 8, Brigade Enterprises said that it has signed two MoUs, one with the Chennai Metropolitan Development Authority (CMDA) and the other with Electronics Corporation of Tamil Nadu Limited (ELCOT), during the Tamil Nadu Global Investors Meet (GIM) 2024. 

The MoU with the CMDA focuses on setting up two high-rise residential buildings with an investment of over Rs 2000 crore strategically positioned in the IT belt of Sholinganallur. This is for Brigade Enterprises’ expansion in Chennai.

The second MoU, signed with ELCOT, Information Technology and Digital Services Department, Government of Tamil Nadu, entails an investment of approximately Rs 1400 crore earmarked for high-rise commercial and residential developments spread across various micro-markets, including Mount Road.

The expansion projects are expected to generate potential employment for around 25,000 people and transform the urban and commercial fabric of the region over the next 3-4 years. The Tamil Nadu government will provide the necessary support and regulatory facilitation subject to applicable laws.