Smallcap stock under ₹50: This realty stock hits 20% upper circuit on open offer announcement | Stock Market News
Source: Live Mint
Smallcap stock under ₹50: Shares of Prozone Realty hit its 20 per cent upper circuit of ₹33.14 on Wednesday, January 1, 2025. The rally followed the announcement of an open offer for acquiring up to 3.96 crore equity shares, representing 26 per cent of the company’s equity, at ₹25 per share. The total consideration for the offer amounts to ₹99.19 crore.
The open offer is being made by M/s. Apax Trust, acting through its Trustee – Nikhil Chaturvedi. According to the filing, the offer is being made under the provisions of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (SEBI SAST Regulations).
The offer price of ₹25 per share is payable in cash, with the total consideration assuming full acceptance.
Stock Performance and Financial Overview
Prozone Realty’s stock is still over 26 per cent below its 52-week high of ₹44.90, which it reached in February 2024. The stock has been volatile over the past year, shedding 18 per cent during this period. It delivered mixed returns, with six months in negative territory and six months in the positive.
Notably, the smallcap stock gained 14 per cent in December and 5 per cent in November, marking a recovery after three consecutive months of losses.
On the financial front, the company reported a net loss of ₹1.33 crore for the quarter ended September 2024, compared to a net profit of ₹1.39 crore in the corresponding quarter of 2023. The company posted a loss despite growth in sales by 28.58 per cent to ₹48.86 crore in Q2 FY2024 as against ₹38 crore in Q2 FY2023.
About Prozone Realty
Prozone Realty designs, develops, and operates shopping malls, residential premises, and commercial properties in India. It operates through two primary segments: Leasing and Outright Sales. The company’s portfolio includes regional shopping centres, gated residential complexes, villas, and commercial office spaces. Additionally, it offers management consultancy services.
Founded in 2007 and headquartered in Mumbai, Prozone Realty was formerly known as Prozone Intu Properties Limited. The company underwent a name change in May 2023 to reflect its new vision and strategic direction.
The open offer announcement has rekindled investor interest in the stock, which had been underperforming for much of 2024.
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