Mumbai: Nitco shares rose sharply on Tuesday, August 25, after the company announced a joint development deal for its land parcels in Alibaug, Maharashtra.
The stock surged 13.5 percent to an intraday high of Rs 109.25. However, it later gave up most of its gains and was trading 5.35 percent higher at Rs 101.43 at 10.39 am.
Deal With HOABL Group
Nitco’s wholly-owned subsidiary, Nitco Realties Private Limited, has signed a Memorandum of Understanding (MoU) with HOABL Impactum Land Private Limited.
HOABL Impactum Land is part of the House of Abhinandan Lodha group. The MoU was signed on August 24 and covers land parcels in Thal and Lonare villages in Alibaug Taluka, Raigad district.
Nitco expects to receive around Rs 1,300 crore to Rs 1,500 crore from the transaction over five years. The company has already received Rs 9 crore by cheque as a security deposit.
Development Rights Granted
Under the MoU, Nitco, Nitco Realties and promoter Vivek Talwar have jointly granted development rights for the land to HOABL.
The parties will develop the Alibaug land parcels together. Final agreements and other documents will be signed after the required conditions are met and regulatory approvals, if needed, are received.
Nitco said it would provide further information to the stock exchanges after the property transaction is fully completed.
No Related-Party Link
The company clarified that HOABL does not own any shares in Nitco. Therefore, the deal is not classified as a related-party transaction.
HOABL has also not received any special rights, including the right to appoint directors or influence changes in Nitco’s capital structure.
Nitco Realties is fully owned by Nitco, while Vivek Talwar is a company promoter. HOABL is not connected with Nitco’s promoter group or group companies.
Reports about a possible partnership for these land parcels had first emerged in April 2026.
Nitco shares have risen nearly 34 percent in six months but remain down about 18 percent over the past year.
Disclaimer: This article is for informational purposes only and does not constitute investment advice; investors should consult financial advisers before investing.
