Stock Report

Omaxe plans to invest Rs. 4000 crore in next 4 years for projects in Tier 2 and Tier 3 Cities

Posted On : 2023-11-19 10:46:41( TIMEZONE : IST )

Listed real estate developer Omaxe is planning to launch 1200 acres (approximately) across Tier 2 & Tier 3 cities in Uttar Pradesh, Madhya Pradesh and Punjab across the next 04 years with an expected investment of around Rs. 4000 crore.

Tier 2 cities offer higher returns than Tier 1 cities. While we have launched two luxury projects in Lucknow, we are now planning to launch projects in Indore, Ujjain and Ratlam in Madhya Pradesh; Amritsar, Bhatinda and Chandigarh in Punjab and Lucknow, Gorakhpur, Allahabad and Vrindavan in Uttar Pradesh.

Omaxe is currently active in Lucknow but plans to enter more cities in Uttar Pradesh going forward. The total investment for Uttar Pradesh is likely to be around Rs 2500 crore in the next four years. This would be across residential, commercial and retail segments.

Omaxe investment in Madhya Pradesh is expected to be around Rs 750 crore spread over next 04 years. In Indore, Omaxe is planning to launch a fourth township spread across 300 acres (approximately) and we are also planning around 73 acre township in Ujjain. We are hoping to launch both the Indore and the Ujjain projects this fiscal. Omaxe is also planning to acquire around 35 acre land parcel in Ratlam. Plotted and mid segment projects are expected to come up across these three cities.

Omaxe is planning to invest around Rs 750 crore in Punjab spread over 04 years. A new township spread over 250-acre is expected to come up in Amritsar and these would primarily be plots. Omaxe is planning to acquire mixed-use land in Amritsar and a township spread across 100 acres is expected to be launched in Ludhiana next fiscal. In Chandigarh, Omaxe is planning to launch around 15-acre shop-cum-offices project and in Bhatinda it is exploring to expand into around 40 acres.

In Gorakhpur, the Company is planning to launch a township spread across 100 acres (approximately) in future, out of which the Company has entered into a Memorandum of Understanding for development of township on land admeasuring 57 acres (approximately). This is expected to comprise plots and villas and expected to be launched in May or June next year. Omaxe is also planning to launch a project in its existing township in Allahabad and Vrindavan by next year.

Shares of Omaxe Limited was last trading in BSE at Rs. 77.73 as compared to the previous close of Rs. 76.84. The total number of shares traded during the day was 27645 in over 463 trades.

The stock hit an intraday high of Rs. 80.00 and intraday low of 76.00. The net turnover during the day was Rs. 2162012.00.