Nitesh Estates hits 20% UC

Nitesh Estates had closed yesterday in a lackluster mode at Rs.10.49 and today it opened itself 20% higher at Rs.12.58, breaching the upper circuit. Almost 68,000 shares changed hands.

This sudden spike up of interest on the counter can be attributed to two factors – firstly, on a macro level, RBI reducing rates has pushed up all realty stocks and secondly, company specific – there is a news report that Goldman Sachs is set to invest around Rs.1,850 crore in a JV company floated by listed developer Nitesh Estates, which will own and operate commercial real estate assets in India.
Goldman will hold 74%, leaving Bangalore-based Nitesh Estates with 26% in the JV entity with plans to acquire rent-yielding office parks, shopping malls and luxury hotels.