GOCL Corporation share price jumps 20% on MoU with Squarespace Builders for ₹3,402 crore land monetisation

GOCL Corporation share price surged nearly 20% on Thursday's session after the Hinduja Group company said that it has signed an initial deal with Squarespace Builders, a company based in Hyderabad, to begin the strategic monetisation of about 264.50 acres of prime land in Kukatpally for ₹3,402 crores. GOCL Corp share price opened at an intraday high of ₹453.35 apiece on BSE. 

In addition, 32 acres of property will be developed under a Joint Development Agreement (JDA) in cooperation with Hinduja Estates Private Limited, which is currently renamed as Hinduja Healthcare Limited (HHL), according to company's exchange filing. 

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“The board its meeting approved entering into of a Memorandum of Understanding (MoU) with Squarespace lnfra City Private Limited, Hyderabad (Squarespace) for monetisation of approx. 264.50 acres of land situated at Kukatpally, Hyderabad, of which 32 acres land is under JDA,” said the company in an exchange filing. 

It further stated that R 520 crore will be paid as the first installment under the agreement, and that the process will be finished over the course of 18 months in carefully scheduled tranches, subject to the compliance of any related conditions.

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Of the 32 acres under the JDA, the company stated that it began the immediate sale of 12.50 acres.

According to GOCL, the company would be paid ₹520 crores as the first tranche, of which ₹160 crores will be used as consideration for the sale of 12.50 acres.

It also said that the remainder of the funds will be paid to the company gradually through more transactions in the future.

“HHL and Squarespace are not related parties of the company and are not related to promoter /promoter group / group companies,” said GOCL Corporation in its release. 

GOCL Corporation share price

As per trendlyne data, GOCL Corporation share price rose 41% and underperformed its sector by 15.81% in the past year.

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Riyank Arora, Technical Analyst, Mehta Equities Ltd said that the stock opened with nearly a 20% gap-up opening in Thursday's session after the company tied up with Squarespace Builders to monetise 264.5 acres in Hyderabad for ₹3402 crore.

"Technically, according to daily charts, a major support is placed at the 375 mark, below which the stock would weaken. On the upside, however, the immediate resistance is placed near the 490–495 levels, with the immediate support somewhere around the 400 mark. Overall, the structure looks bullish, and the stock would be a good buy on pullbacks for potential upside targets of 490 and 495 with a strict trading stop loss at 400," advised Arora.

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