Shares of Shriram Properties Ltd rallied 5% on 31 December after the company announced selling a 3.9-acre land parcel in Chennai to a large healthcare and educational group in South India.
The company, via its wholly-owned subsidiary SPL Shelters Private Limited, holds a 3.9-acre plot of land designated for retail space development.
Situated strategically along GST Road, the property is located next to a fully operational 4.0 million sq. ft. office complex and the 2.0 million sq. ft. residential project “Shriram Park 63,” offering significant potential for retail and commercial growth, the company stated on Monday.
However, given the company’s primary focus on residential real estate development, SPL has decided to sell its equity investment in the fully owned subsidiary in order to profit from the land.
Murali M, CMD of SPL, said, “This transaction marks a significant step in the company’s plan to unlock value from existing non-core land parcels and redeploy capital for growth funding needs. We believe this move reinforces our commitment to prudent financial management and allows us to focus on accelerating growth in the residential projects across our portfolio.”
Shriram Properties reported a consolidated net loss of Rs 0.99 crore for the September quarter of the fiscal year 2024–2025, as opposed to a net profit of Rs 20.15 crore for the same period the previous year. Furthermore, from Rs 206.08 crore to Rs 141 crore, operating revenue fell 31.8% from the prior year.
Shriram Properties is a real estate development and construction services provider with a focus on mid-market and affordable homes. It is one of South India’s top five residential real estate developers, having opened properties in major cities, including Bengaluru, Chennai, and Hyderabad.
At 11:30 am, the shares of Shriram Properties were trading 3.40% higher at Rs 107.66 on NSE.
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