Megasoft concludes project and signs lease rental agreement for Phase 3 (Block 3) of the company's property in Hyderabad; Stock hits record high

4 Jan 2022 , 11:03 AM

Megasoft Limited announced on Monday that it has just concluded and signed a lease agreement for the third and final block (Block 3) for its share, and part rental payments are expected to be received from Q1 of 2022 after adjusting for the rent-free period.

The company is in the process of negotiation and finalization of accounts with its JDA Partner M/s Darshita Infrastructure Pvt Ltd (Salarpuria Sattva group) to conclude on its final share and payments to be settled, details of which will be published in the financial year-end accounts (2021-22).

The company stock was trading at record high on Tuessdy. At around 11.05 am, Megasoft Ltd was trading at fresh 52-week high of Rs83.60 per share (p by Rs3.95 or 4.96% (5% upper circuit) from its previous closing of Rs79.65 on the BSE.

The company on August 7, 2016, had announced that it is in the process of setting up a large IT facility in its property at Nanakramguda, Hyderabad (Registered in the company’s favour in May 2015 by TSIIC through a conditional sale deed) with a developer (shareholders’ approval through a postal ballot was obtained dated March 22, 2016).

On November 9, 2018, the company had announced that it has received approval for this JDA from the government of Telangana/Telangana State Industrial Infrastructure Corporation (TSIIC) and will receive & retain approximately 5 lakhs square feet as its net share (to accrue in three phases). Vide the above notification the company had also announced that for the first phase (Block 1), it has entered into a lease rental agreement.

Subsequently on February 14, 2019, the company had announced that the rentals receipts for Block 1 have started. On 6 February 2020, the company announced that second phase (Block 2) is nearing completion and that it has entered into a lease rental agreement for the same. The lease rental revenues have been accruing from Q1 of 2027 and reported in its published quarterly results.