Multibagger Realty Stock In Focus Amid Merger Plans And New Contracts

Today, Hazoor Multi Projects Ltd witnessed a 2.11% rise in its stock price, climbing from Rs 582.65 to Rs 595 per share. This marks a substantial gain for the company, which has delivered multibagger returns of over 400% from its 52-week low of Rs 115. With a current market capitalization of Rs 1,196.5 crore, Hazoor Multi Projects Ltd continues to showcase strong growth potential in the infrastructure sector.

On Monday, the Board of Directors of Hazoor Multi Projects Ltd, during their meeting held on Monday, September 16, 2024, at the company's registered office in Mumbai, granted in-principle approval for the merger of Square Port Shipyard Private Limited with Hazoor Multi Projects Ltd. This merger is intended to leverage the synergies of both companies, combining their strengths for mutual benefit. The merger aims to enhance the operational efficiency and financial position of Hazoor Multi Projects, benefiting all stakeholders, including shareholders and creditors.

The merger is subject to the necessary approvals from shareholders, creditors, stock exchanges, the National Company Law Tribunal (NCLT), the Securities and Exchange Board of India (SEBI), and other statutory authorities. To ensure the smooth and timely execution of the merger, the Board has established a Specific Transaction Committee. This committee will oversee all aspects of the merger, including the appointment of intermediaries and ensuring compliance with regulatory requirements.

In another significant achievement, Hazoor Multi Projects Ltd was recently awarded two major contracts by the National Highways Authority of India (NHAI). The first contract, valued at Rs 2.59 crore, appoints Hazoor Multi Projects as the user fee collection agency for the widening of the NH218 Bijapur-Hubli section in Karnataka. This contract is expected to be completed within three months from the date of appointment.

The second contract, worth Rs 17.94 crore, involves user fee collection at the Bogalur fee plaza on NH-9 in Tamil Nadu. The contract also includes the maintenance of adjacent toilet blocks and the replenishment of consumable items. This project is set to be executed within one year of the appointment date.

In an effort to enhance liquidity and make its shares more accessible to retail investors, the Board of Directors also announced a stock split in the ratio of 10:1. This means that each equity share with a face value of Rs 10 will be subdivided into 10 equity shares with a face value of Rs 1 each. The record date for the stock split will be announced in due course.

Founded in 1992, Hazoor Multi Projects Ltd initially focused on residential construction before transitioning to infrastructure development. Today, the company primarily operates as a subcontractor for national highway projects, working closely with government agencies such as the Maharashtra State Road Development Corporation and the National Highways Authority of India. In addition to its role in national highway projects, Hazoor Multi Projects Ltd has expanded into the EPC (Engineering, Procurement, and Construction) contracting business, further diversifying its portfolio.