GOCL soars 20% after signing a MoU with Squarespace Builders for land worth Rs 3,402 crore

GOCL Share Price: GOCL Corporation Ltd was off to flying start on BSE on Thursday (March 28, 2024) as its stock skyrocketed by 20 per cent after the one of the largest manufacturers of energetics in India signed a MoU with Squarespace Builders Private Limited, Hyderabad, for the monetisation of 264.50 acres of land.

After closing at Rs 377.80 on Wednesday evening, the GOCL stock began its journey on Thursday at Rs 453.35, which was a 20 per cent jump from the previous close.

The stock was soaring by 12.40 per cent, or Rs 46.85, at Rs 424.65 at 9:50 am on Thursday.

Why GOCL stock is soaring today

GOCL soared in the first trading session after the company announced that it has signed a Memorandum of Understanding (MoU) with Squarespace Builders Private Limited, Hyderabad, for the monetisation of approximately 264.50 acres of land situated at Kukatpally, Hyderabad.

Out of this total land, 32 acres land is under joint development agreement (JDA).

The monetisation will take place over a period of 18 months in tranches, subject to fulfilment of any covenants, GOCL said in a statement on Wednesday.

"Out of the aforesaid 264.50 acres, immediate sale of 12.50 acres land which is under joint development agreement (JDA) with Hinduja Estates Private Limited, now known as Hinduja Healthcare Limited (HHL)," the company said.

The consideration for the entire land under the MoU is Rs 3,402 crores.

"A payment of Rs 520 cores will be received on signing of the MoU. Of this, Rs 160 crores will be the consideration for sale of 12.50 acres of JDA land and the balance will be retained by the company as advance for future tranches," said the company.