Brigade Enterprises shares jump 6% to hit new high; here's why

Shares of Brigade Enterprises surged during the early trading session on Tuesday after the company announced signing multiple memorandum of understandings (MoUs) with the Tamil Nadu government. The company informed about the same through an exchange filing after the market hours on Monday.

Brigade Enterprises has signed MoUs with the Government of Tamil Nadu to invest over Rs 3,400 crores in the state with a potential employment for around 25,000 people over the next three-four years, said the company in its media release, shared with the bourses.

The company signed two MoUs, one with the Chennai Metropolitan Development Authority (CMDA) and the other with ELCOT, Information Technology and Digital Services Department, Government of Tamil Nadu as part of Tamil Nadu’s Global Investors Meet (GIM) 2024, it added.

The Government of Tamil Nadu will provide the necessary support and regulatory facilitation subject to applicable laws. The MoU with Chennai Metropolitan Development Authority is for Brigade’s expansion in Chennai and setting up two high-rise residential buildings in the IT belt of Sholinganallur, with an investment of over Rs 2,000 crores, said the company.

The second MoU is with ELCOT, IT&DS which entails an investment of around Rs 1,400 crores for high rise commercial and residential developments, across different micro-markets including Mount Road. These projects are expected to be completed within the next three-four years, it added further.

Following the announcement, shares of Brigade Enterprises surged more than 6 per cent to Rs 1000, its new 52-week high, on Tuesday, with a total market capitalization of more than Rs 23,000 crore. The scrip had settled at Rs 940.25 in the previous trading session on Monday.

Shares of Brigade Enterprises have delivered a return of more than 130 per cent from its 52-week low at Rs 430.95, hit a year ago. The stock has surged about 625 per cent in the last five years. It is up 75 per cent in the last one six-months, while gained about 20-odd per cent in the last one month period.

Bengaluru-based Brigade Enterprises is a real estate and property development company, whic has operations in Mangalore, Mysore, Chennai, Kochi, Hyderabad, Chikmagalur, Ahmedabad and a representative office in Dubai. 

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