Oberoi Realty builds up

Oberoi Realty is the top gainer of the day currently, up almost 11% at Rs.220, with a jaw dropping jump up in volumes at over 18 times. The stock hit an intra day high at Rs.234.50.

The realty stock is in the spotlight today as news has emerged that it is not Tata Housing as was rumoured but Oberoi Realty which is the highest bidder for Tata Steel’s land at Borivali, Mumbai. It is now clear that Oberoi is the new owner, bidding at Rs.1155 crore for the 25 acre land.

As per the terms of the auction, Oberoi will now pay 10% of the bid value as earnest money within two days of signing the Letter of Intent and the rest is to be paid before end of April. Also, the company needs to obtain a set of NOCs within three months.

Oberoi seems to be finally getting back into some aggressive bidding and developing projects, after having stayed staid for some time now.  A few months ago, in Jan’14, the much awaited nod from the Supreme Court was received for its land at Mulund, Mumbai. The SC dismissed a lower court judgement that had declared as private forest certain properties that a unit of the real estate developer wanted to develop. Thus with two new projects in hand, both in Mumbai, traders seem to be running in favor of the stock.