2.2% Dividend Yield: Hinduja Group Co's Shares Hit 20% Upper Circuit On 265 Acre Land Monetisation

GOCL Corporation Ltd, a flagship company of the Hinduja Group, has inked a lucrative agreement with real estate developer Squarespace Builders to unlock the value of approximately 264.5 acres of prime land nestled in Hyderabad's bustling Kukatpally locality. This deal is poised to bring in a sum of over Rs 3,402 crore.

Under the terms of the agreement, GOCL, in collaboration with Hinduja Estates, now known as Hinduja Healthcare, will also embark on the development of 32 acres of land through a Joint Development Agreement (JDA). The transaction is slated to unfold over an 18-month period, subject to the fulfilment of specific conditions.

As a testament to the immediacy of action, GOCL has kickstarted the process by initiating the sale of 12.50 acres from the aforementioned 32 acres earmarked for joint development. The company disclosed this development in a regulatory filing, shedding light on the first tranche of payments expected to flow in.

In this initial phase, GOCL anticipates receiving a payment of Rs 520 crores, with Rs 160 crores earmarked as consideration for the sale of the 12.50 acres. The residual funds will be disbursed to the company in subsequent phases, underscoring the long-term financial strategy orchestrated by GOCL.

It's noteworthy that the infusion of funds from this monetization exercise is earmarked for fueling future growth initiatives. GOCL's real estate arm is already engaged in a project - Ecopolis, a sprawling IT & IT-enabled services special economic zone sprawled over 40 acres in Bengaluru, developed in collaboration with Hinduja Realty Ventures.

Ecopolis, boasting a total built-up area of 8 million sq ft, encompasses commercial offices, hotel and hospitality solutions, and service apartments. Notably, the first office block and multi-level car park spanning 1.5 million sq ft are ready for occupation, while construction for the second office block, spanning 1 million sq ft, is currently underway.

This foray into real estate development complements GOCL's diverse business interests across multiple sectors. As part of the illustrious Hinduja Group, GOCL operates in mobility, lubricants and specialty chemicals, banking and finance, digital technology, healthcare, infrastructure project development, media and entertainment, power, and real estate.

Primarily known for its expertise in energetics and commercial explosives, GOCL and its subsidiaries cater to various industries. The company is renowned for crafting specialized products for the defence and space sectors, alongside offering metal cladding solutions leveraging explosives. Recent ventures have seen GOCL diversifying into electronics and venturing into large-scale real estate projects in Bengaluru and Hyderabad.

The market response to this landmark deal has been resounding, with GOCL Corporation's shares witnessing a staggering surge. Locked at a 20% upper circuit, the stock is trading at Rs 454.60 per share as of 2:30 pm on the National Stock Exchange (NSE). This uptick reflects a remarkable 35% gain over the past year.