Godrej Properties subsidiary buys 20% stake in Vagishwari Land Developers; stock tumbles

Pursuant to the said acquisition, VLDPL has become an associate company of Godrej Projects Development Limited and consequently of Godrej Properties Limited, the company said.

Jun 11, 2021 11:06 IST India Infoline News Service

Godrej Properties said in the regulatory filing that its wholly-owned subsidiary Godrej Projects Development has acquired 20% issued and paid-up share capital of Vagishwari Land Developers (VLDPL).

Pursuant to the said acquisition, VLDPL has become an associate company of Godrej Projects Development Limited and consequently of Godrej Properties Limited, the company said.

The paid-up capital of VLDPL is Rs1 lakh. The total income of VLDPL for the year ended March 31, 2021, was Nil. The acquisition does not fall within related party transactions. The promoter/promoter group of the Company have no interest in the company being acquired, Godrej Properties said in the filing.

The acquisition is done in accordance with the Acquisition Agreement entered into with the shareholders of VLDPL. Godrej Projects Development Limited along with other investors intend to develop a real estate project on the land owned by VLDPL.

In the regulatory filing, the cost of acquisition or the price at which the shares are acquired at Rs29,99,92,515. 200 Equity Shares of Rs.100 each, representing 20% paid-up equity share capital of VLDPL are acquired. Post-acquisition, the VLDPL has become Associate of the Company, the company said.

The stock is currently trading at Rs1,427.40, down by Rs10.9 or 0.76% from its previous closing of Rs1,438.30 on the BSE.

The scrip opened at Rs1,443 and has touched a high and low of Rs1,449.20 and Rs1,421.80 respectively.

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