Indiabulls Real Estate Stock Drops After MIDC Orders Land Evacuation in Nashik SEZ
Indiabulls Real Estate stock dropped 4.3% after receiving a land evacuation order from MIDC for its Nashik SEZ land. The company is evaluating legal options against the "unlawful" order.
Nashik, Maharashtra: Shares of Indiabulls Real Estate fell 4.3% on the National Stock Exchange (NSE) today after the Maharashtra Industrial Development Corporation (MIDC) issued a vacation order for a land parcel in the Nashik SEZ.
The order, received by both Indiabulls Real Estate and its subsidiary Indiabulls Industrial Infrastructure on March 5th, mandates vacating the land within one month.
According to Indiabulls, Indiabulls Industrial Infrastructure was in the midst of planning further development on the SEZ land and had submitted a preliminary revival plan to the MIDC. The company has termed the order "unlawful" and is evaluating legal options to challenge it.
This news comes amidst a positive year for Indiabulls Real Estate, with its stock price increasing by over 89% in the past year. However, the company's Q3FY24 results revealed a 25% year-on-year decline in revenue to Rs 112 crore, despite a near 84% YoY increase in net profit to Rs 38.65 crore.
The impact of the MIDC order and any potential legal challenges on Indiabulls Real Estate and its future development plans in the Nashik SEZ remain to be seen.
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