Brigade Enterprises rallies 6% on signing JDA to develop residential apartments in Chennai

New Delhi: Shares of Brigade Enterprises surged over 6 per cent in Tuesday’s early trade after the company signed a joint development agreement (JDA) to develop around 2.1 million square feet of residential apartments in Chennai.

Over 15 acres of land located at Perumbakkam, just off OMR Sholinganallur Junction will be developed as a large residential township, the company said.

Pavitra Shankar, Executive Director and Head of Residential Business, Brigade Enterprises said, “South India will continue to be a key focus for us, and this project is part of our strategy to expand our presence in Chennai. The project will have a revenue realisation of over Rs 1,500 crore in about 5 years. We expect a positive response from customers, especially from the IT and ITeS sectors as it is in the heart of the IT Office belt.”

Brigade Enterprises targets revenue of over Rs 6000 crore over the next 5 years from its Chennai residential business, alone. Further, as a part of its consolidation plans in Chennai, the group is expanding its presence in the residential, commercial and retail verticals.

At 9:45 am, the scrip traded at Rs 459.55 around 4.3 per cent up against its previous close of Rs 440.6. The stock hit day's high of Rs 467.

HDFC Securities has a buy call on Brigade Enterprises with a target price of Rs 620.

The stock has given a 3-year return of 156.52 per cent as compared to a 49 per cent rise seen in the Nifty Midcap 100.