Vipul on a surge

Vipul Ltd is on a surge. The stock had hit a new 52-week high at Rs.79.30 and today too it hit a new high at Rs.84.50, remaining firmly in the green.

There are two reasons for this celebration. Firstly, this Gurgaon-based real estate developer announced that it has received Environmental clearance from State Environment Impact Assessment Authority, Haryana for its project Aarohan on Golf Course Road in Gurgaon. The project was stuck till now despite having sold more than 26% of flats in the Phase I of the project. So the market is happy that the green nod will once again give impetus to fat sales.

The second reason is that the company has received loan sanction from PNB to the tune of Rs.275 crore and out of this, it will use Rs.163 crore to prepay the more expensive debt of Rs.175 crore it got from DMI Finance Pvt Ltd. This is expected to bring down interest burden and improve the cash flow.

Promoters hold 63.38% stake in the company with neither an FII nor a DII holding a single share in the company.