Sunteck Realty share price are being closely watched today. Yesterday, the company announced its decision to invest in its subsidiary. The investment will be in Sunteck Lifestyle International Private Limited (SLIPL). The amount is expected to be between $10 and $20 million. This will be done either via equity/preference shares or convertible securities.
SLIPL is a wholly owned subsidiary of Sunteck Realty. It was incorporated in Mauritius. It was established as a private company on October 25, 2013. The primary business activity of SLIPL is that of an investment holding company. The turnover of the company has been nil for the past 3 financial years. These include 2023-24, 2022-23, and 2021-22.
The proceeds from this investment will be utilised by SLIPL. The purpose is to make further investment in entities. These entities are directly or indirectly involved in the existing Dubai Project. The company disclosed this information in a stock exchange filing on Wednesday.
Since Sunteck’s transaction is with its wholly owned subsidiary, it has been classified as a related party transaction. However, the company stated that it will be conducted on an arm length basis. The company also clarified that none of its promoters or promoter group companies have any interest in this transaction.
The infusion of funds will occur in one or more tranches. The timing will depend on the financial requirements of the existing Dubai Project. This investment is planned to take place for approximately 24 months.
On Wednesday, Sunteck Realty share price closed at ₹386.95 on the BSE. The stock experienced a decline of ₹11.90. This represents a fall of 2.98% compared to the previous closing price.
The stock has underperformed the market this year. It has fallen by over 24% year-to-date. Its one-year returns are also negative, standing at -3.3%. In contrast, the BSE Sensex has shown gains. It has risen by 6.7% in the past year. The Sensex’s year-to-date fall is 1.5%.
Sunteck Realty will invest US$10-$20 million in its subsidiary for the Dubai project. This investment aims to support their international ventures. The stock has underperformed recently but remains focused on its development plans.
As of 1.08 PM, Sunteck Realty share price was up 2.30% and was trading at ₹395.30.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Mar 27, 2025, 1:42 PM IST
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