Mahindra Lifespace Developers Ltd., through its subsidiary Mahindra World City Developers Ltd., will develop the second phase of its industrial parks project in Tamil Nadu.
The project will be carried out in partnership with Japan's Sumitomo Corporation—both the entities had inked a joint venture agreement back in 2015, according to an exchange filing on Friday.
Through a supplemental agreement, the joint venture received an additional investment of Rs 225 crore by both the involved parties in proportion of their current shareholding, the filing said.
The JV—Mahindra Industrial Park Chennai Ltd.—is owned 60% by Mahindra World City Developers and the remaining 40% is held by Sumitomo.
"This new phase will also concentrate on acquiring and developing land and associated infrastructure to establish an advanced industrial ecosystem," a press release stated.
Commenting on the development, Mahindra Lifespace Managing Director and Chief Executive Officer Amit Kumar Sinha said the partnership with Sumitomo Corporation "reflects our commitment to fostering progress and enabling industries to thrive sustainably".
"We take pride in developing industrial clusters and integrated cities that drive economic growth and support businesses," he added.
Mahindra Lifespace's Past Deals
Mahindra Lifespace, through its subsidiary Anthurium Developers Ltd., will collectively develop an approximately 37-acre land parcel in Mumbai with GKW Ltd., the company disclosed earlier this month.
They will jointly develop the land at Kanjur, Bhandup West. This project is poised to be one of the company's largest urban mixed-use developments.
In July, the Mahindra Lifespace won a project worth Rs 2,050 crore in Bengaluru and Mumbai. The firm was a preferred choice for the redevelopment project of seven residential societies in Mumbai, with a gross development value of Rs 1,800 crore.
Shares of Mahindra Lifespace closed 1.4% higher at Rs 461.25 apiece on the National Stock Exchange, compared to a 2.39% advance in the benchmark Nifty 50. The share price has fell 12.26% in the last 12 months and 15.13% on a year-to-date basis.
Out of the seven analysts tracking the company, six have a 'buy' rating on the stock and one recommends 'hold', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 37.2%.
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