Produced by: Tarun Mishra Designed by: Muskan Arora
Ahmedabad-based small-cap firm, Praveg, experienced a notable 17.51% surge in its stock prices on Monday, reaching Rs 1,015.95 on the BSE and was trading 16% higher on Tuesday's trading session till 1 pm. This surge was attributed to the India-Maldives dispute over Lakshadweep, drawing increased attention to the region.
According to a BSE filing, in December last year, Praveg, a luxury resort and event management company, secured a work order for the development, operation and management of a tent city on Agatti Island in Lakshadweep, for a period of three years, extendable up to two more years.
Prime Minister Narendra Modi's visit to Lakshadweep and subsequent negative comments from Maldives have led to a renewed interest in Lakshadweep among Indian tourists. Praveg's stocks benefited as investors seized the opportunity presented by this surge in tourist interest.
With successful operations in Diu & Daman, and Rann of Kutch, Praveg has expanded its portfolio to 580 operational rooms across multiple states in recent years. The recent project in Lakshadweep adds to their eco-responsible hospitality initiatives, combining luxury with sustainability.
Government platform MyGov reported that worldwide search interest in Lakshadweep reached its highest point in two decades after PM Modi's recent visit to the archipelago. The heightened global curiosity contributed to the positive market response for Praveg.
By January 8, 2024, Praveg's stocks have witnessed a significant threefold increase in the last one year and an astonishing 42,000% surge in the last five years. Analysts link this rise not only to Lakshadweep developments but also to ongoing developments in Ayodhya, where the Ram temple is under construction.
Praveg also has 2 Tent City in Ayodhya. Company's Brahma Kund Tent City is located less than a kilometre from the place where Ram Mandir's construction is going on. Another Tent City called Sarya is just located 3.5 km from the construction site.
Former aviation minister Praful Patel's announcement of plans to transform Agatti airport into a world-class international facility has further buoyed Praveg's stocks. The anticipated boost in tourism, connectivity, and development in Lakshadweep adds to the favourable conditions for Praveg's operations.