Man Infraconstruction Shares Rally 14% To Hit Record High On Fundraising Plan

Leading construction company Man Infraconstruction's shares surged by approximately 14 per cent in early trade on Thursday, reaching an all-time high of Rs 181 per share, propelled by the company's declared fundraising objectives. The firm stated on Wednesday that its Board of Directors would meet on November 29, 2023 for the purpose of the same.

"In terms of Regulation 29(1)(d) and all other applicable regulations, if any, of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that a meeting of the Board of Directors of the Company is scheduled to be held on Wednesday, November 29, 2023, inter-alia to consider the following: 1. Proposal for raising of funds by way of issue of one or more of instruments comprising of equity shares, convertible securities of any other description or warrants or debt securities, through Private Placement/Preferential Issue/Qualified Institutions Placement or such other methods or combinations thereof as may be decided by the Board and to approve ancillary actions for the above mentioned fund raising, subject to such statutory/regulatory approvals as may be necessary, including the approval of the Shareholders of the Company, wherever required; and 2. Conducting Extra-ordinary General Meeting/Postal Ballot, to seek approval of shareholders inter-alia in respect of the aforesaid proposal, if the same is approved by the Board," said Man Infraconstruction in a stock exchange filing.
The company reported revenue from operations of Rs 113.06 crore in the September 2023 quarter down 7.65% from Rs. 122.42 crore in the September 2022 quarter.

Its net profit stood at Rs. 44.84 crore in Q2FY24 down 18.07% from Rs. 54.72 crore in Q2FY23. EBITDA reached Rs. 62.44 crore in the quarter under review down 5.28% from Rs. 65.92 crore in the year-ago quarter.

The corporation has started work on three massive projects, one of which is the construction of the tallest building in India. With a height of 1,000 feet, the company unveiled the Aaradhya Avaan project in the Tardeo neighbourhood of South Mumbai, which it says is the nation's tallest building. With an entire area of more than 18 lakh square feet, the building's total salable floor surface would be 6.5 lakh square feet.

The company stated in its regulatory filing that it anticipates making Rs 8,000 crore in revenue from the sale of three residential real estate projects, including the tallest building and the other two that are currently being built in Goregaon and Ghatkopar.

The Managing Director of Man Infraconstruction, Manan Shah, stated that the Aaradhya Avaan may generate up to Rs 3,000 crore in revenue. After refurbishing ten buildings in Ghatkopar, he said, the company aims to make revenue of Rs 1,200 crore from its Goregaon project and Rs 4,000 crore from its Goregaon project.

Man Infraconstruction has generated a multibagger return of 134.18% and 136.82% on a YTD basis.