Scan to Download ios&Android APP

Sunteck Realty jumps on plans to build mega-township outside Mumbai

08:35, 16 September 2021

Share this article

Have a confidential tip for our reporters?

A construction worker starts work on top of a roof in the early morning inMumbai
A construction worker begins work on a roof in Mumbai, India – Photo: Shutterstock

Shares of India’s Sunteck Realty shot up on Thursday following a press release stating that the company plans to develop “an aspirational luxury integrated residential township”, some distance away from crowded and expensive Mumbai.

Sunteck’s stock jumped 5.5% to INR449 ($6.11) in morning trade on India’s National Stock Exchange (NSE) after the company said it will build 10 million square feet of residential space on a 50-acre patch in the Shahad town, which is roughly 60km from the country’s financial capital.

According to the statement, the project will be under the asset-light joint development agreement (JDA) model with its partner, Shahad-based chemical plant Amar Dye Chem Ltd. The project is expected to generate a revenue of about INR90bn ($1.23bn) over seven to eight years.

Accreting value

“We are happy to announce this value-accretive joint development plan with [our partner] Amar Dye Chem,” commented Sunteck Realty’s chairman and managing director, Kamal Khetan.

“In line with the trend seen post the [outbreak of the] pandemic, there is a growing demand for good peripheral locations around major metros... Market consolidation in favour of quality and well-funded real estate companies has been an ongoing trend, and Sunteck has been a key beneficiary of this trend, continuously expanding its business portfolio with attractive return opportunities,” Khetan added.

Sunteck claims it is the fastest-growing Mumbai-based luxury real estate developer. It already has a strong portfolio in the western suburbs of the Mumbai Metropolitan Region (MMR), and this project will strengthen its presence in the eastern suburbs, as well as further strengthening cash flow and the balance sheet, said Sunteck. 

The builder of homes and offices has a market capitalisation of around INR58bn. Its development portfolio spans 38 million square feet spread across 19 projects, the statement mentioned.

Read more: India's largest bank SBI cuts lending rates

Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?


Join the 400.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account

2. Make your first deposit

3. You’re all set. Start trading