The authority said the project proponent had begun construction activities without prior permission. The order, dated May 8, has put the company’s 2 million square feet residential project under scrutiny. Brigade Enterprises had earlier estimated a gross development value of around ₹2,100 crore from the project.
Following the announcement, shares of Brigade Enterprises slipped towards the day’s low before recovering part of the losses to trade at ₹555 on the NSE at 02:16 PM, down nearly 2% or ₹10.85.
Separately, the stock has also been in focus due to a technical adjustment following its 1:3 bonus issue. Under the ratio, shareholders will receive one bonus share for every three shares held, implying a 25% adjustment in the stock price.
The bonus issue had been approved by the company’s board in May alongside its March quarter earnings.
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Brigade Enterprises reported a 41.1% year-on-year decline in consolidated net profit for Q4 at ₹145.5 crore, compared with ₹246.8 crore a year earlier. Revenue for the quarter was largely flat at ₹1,457.6 crore versus ₹1,460.4 crore last year. Diluted earnings per share stood at ₹5.94, compared with ₹10.32 in the corresponding period last year.
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