Nitesh Estates spikes 20% as Chinese firm eyes major stake in real estate company
Nitesh Estates shares were locked at 20 percent upper circuit at Rs 15.93 on the BSE Thursday after a media report indicated that Chinese company is eyeing major stake in the real estate firm.
“Shanghai-based Fosun Group is in advanced discussions to invest Rs 800 crore (USD 125 million) in southern developer Nitesh Estates in what would be the Chinese conglomerate’s first M&A deal in the Indian real estate sector,” The Times of India said.
Billionaire Guo Guangchang-led Fosun is likely to pick up around 50 percent stake; and Nitesh plans to issues shares to Fosun Property Holdings and IDERA Japan through preferential allotment, the report added.
If the deal goes through, then it would be Fosun’s second buy in India after buying controlling shares in Hyderabad-based Gland Pharma last year.
While clarifying on the media report, Nitesh Estates in its BSE filing said, “We want to put on record that the company and its subsidiaries are in the midst of multiple capital raising exercises. Under the circumstances, we neither deny nor confirm the news report.”