Brigade Enterprises shares slip after EC revoked for ₹2,100 crore Chennai project

Prestige Estates, ABIL Group to develop ₹9,000 crore residential project in Mumbai's Versova


Brigade Enterprises Ltd was in focus on Thursday after the Tamil Nadu Environment Authority revoked the environmental clearance granted earlier for its Morgan Heights project in Chennai.

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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