Based on the annoucement dated 16th September 2024, stating that the company has received 23 lakh sq. ft. area in the form of DRC. Based on a rudimentary calculation based on reputed articles, the company can sell these to other developers at Rs5000-6000 per sqft, thus a windfall gain of around 1000-1200 crores on a market cap of approx 1200 crores, this seems like a no-brainer. Additionally, this is tax-free income.
Furthermore, we could use this mechanism to value the remaining land in chembur, assuming that all of it were to be handed over to BMC in exchange for DRC, the remaining land could be valued at about 1500cr.
For those wondering,“TDR certificate/ Development Rights Certificate (DRC) is **a certificate issued by the competent authority to an owner or a lessee of the land on surrender of the gross ‘area’ of the land which is required for public purpose.”
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