Puravankara Shares Jump 10% on New JV Announcement with KVN Property Holdings

Puravankara shares surged 10% in intra-day trading on Monday, May 12, after the company announced a new joint venture (JV) with KVN Property Holdings LLP. This announcement sparked investor interest, boosting the stock price to ₹241.55.

Market Performance

Puravankara's stock has shown notable volatility over the past year. Although the recent surge is encouraging, the stock remains 57% below its 52-week high of ₹565, reached in July 2024. Here's a quick look at the stock's performance:

• Current Stock Price: ₹241.55 (up by 10%)
• 52-Week High: ₹565
• 52-Week Low: ₹205.05
• Performance in May: +2%
• Performance in April: -5.7%
• Performance in March: +3%
• Performance in February: -18%
• Performance in January: -23%

Puravankara shares have declined about 40% in the past year despite the jump.

Main News

The new joint venture is set to develop a 24.59-acre land parcel in North Bengaluru. With an estimated Gross Development Value exceeding ₹3,300 crore, this project will feature a saleable area of approximately 3.48 million sq. ft. The project is slated for launch within the next six months and is expected to benefit from high residential demand due to its strategic location near the Kempegowda International Airport.

Puravankara's Managing Director, Ashish Puravankara, expressed confidence in the project's success, emphasizing the location's potential and the company's focus on creating integrated housing solutions for urban homebuyers.

Company Details

Puravankara is a well-established real estate developer with a presence across India. The company has a history of over five decades and operates under three key residential brands: Purva, Provident Housing, and Purva Land. It has completed over 85 projects covering 51 million sq. ft. across nine cities and holds a land bank of approximately 30 million sq. ft.

In a separate announcement, the company also disclosed leadership changes. Mallanna Sasalu was appointed as the new CEO of Puravankara Ltd—South, subject to the board's approval. Meanwhile, Abhishek Kapoor stepped down as CEO and Executive Director.

Financial Summary

• Estimated GDV of New Project: ₹3,300 crore
• Saleable Area: 3.48 million sq. ft.
• Project Launch: Within the next 6 months
• Company Land Bank: 30 million sq. ft.
• Completed Projects: 85 projects, 51 million sq. ft.

Summary

Puravankara's recent announcement of a JV with KVN Property Holdings and the surge in stock price reflect growing investor confidence. While the stock has faced challenges in the past year, the company's new project and leadership changes position it for future growth, particularly in the growing North Bengaluru market. The joint venture is expected to be a significant step in meeting the strong demand for residential properties in the area, further boosting the company's prospects.