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Our Bureau

Kolkata , Aug. 23

THE Mumbai-based Prime Property Development Corporation's stock has been aiming sky in the past one month or so despite rain, flood and 5 per cent upper circuit.

The BSE-listed counter has gained 159.64 per cent in just one month to create yet another peak on Tuesday at Rs 218.75. The trading volumes attracted by the stock have also been hefty. Today, the counter logged a traded quantity of 2.15 lakh shares against 1.79 lakh shares on Monday and the last two-week daily average of 1.41 lakh shares.

The company board today decided to announce a 20-per cent interim dividend for 2005-06 (04-05 final dividend was 10 per cent), split the Rs 10 share into Rs 5 each, raise fund of around Rs 200 crore through equity issue at a hefty premium and hike the borrowing limit of the board to Rs 600 crore from the current Rs 100 crore.

Mr Alok Chaudhri, CEO of the company, told Business Line that the company would place the proposals at the AGM on September 30 next and then seek the merchant banker's opinion on the route for raising the equity. The proposal has sought to explore all options including public, rights, preferential and GDR issues.

The company has five on-going projects in Mumbai, in addition, Mr Chaudhri said, a set of three new projects has already been taken up in the city. The completion of these projects is scheduled between 2006 and 2007. The company, in its first venture outside Mumbai, is planning to set up an info-tech park in Chennai. The official said negotiations are on for acquiring more than five-acre area for the project.

The company revenue model is based on leasing or renting out ready properties. "This fetches best price, though the capital investment is higher. Our average return on investment varies between 18 to 24 per cent," he added.

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