Omaxe shares close 14% higher: Why the real estate major's stock rose today

Shares of Omaxe Ltd, a leading real estate developer, rose 14% on June 16. This surge follows the company's announcement of acquiring 260 acres of land in Amritsar. The initial phase involves the development of 127 acres, backed by an investment exceeding Rs 1,000 crore.

Omaxe Ltd's stock ended 13.75% higher to Rs 107.98 on BSE on Monday. Market cap of the realty firm stood at Rs 1966 crore. 

According to a regulatory filing, "The township is just 12 minutes from the Golden Temple and will soon include a hotel to further enhance its appeal. In the future, we also see the opportunity to expand this township through new land acquisitions."

Omaxe has ensured that the first phase of the project, which includes residential plots sized 300, 500, and 1000 square yards, is backed by RERA registration and necessary approvals. The comprehensive master plan aims to integrate commercial spaces, a school, a clubhouse, and community infrastructure. As the project progresses, it will be developed in phases, with the first phase slated for completion in approximately four years.

"The initial investment is being funded through internal accruals. With strong market feedback and sanction received from financial institutions, the project has achieved its financial closure," the company added. The investment in this project positions Omaxe strategically within an evolving infrastructure landscape, aiming to cater to the growing demands of modern living.

The New Amritsar township will benefit from regional infrastructure advancements, notably the upcoming 99 km Nakodar-Amritsar branch of the Delhi-Amritsar-Katra Expressway, expected to reduce travel times to Delhi and Jammu by 2026. This development signifies Omaxe's strategic growth in Punjab, where it already operates in six cities: New Chandigarh, Ludhiana, Patiala, Derabassi, Amritsar, and Bathinda.

The company's expansion into Amritsar aligns with its broader vision to harness infrastructure growth, enhancing connectivity and living standards in the region. Moreover, this project is expected to boost the local economy, create jobs, and improve the overall quality of life for residents, making it a pivotal development in the area. The strategic location and modern amenities are anticipated to attract significant interest from potential buyers and investors.