VR Infraspace Ltd sees a 5% share jump following the announcement of its entry into aluminium manufacturing

VR Infraspace Limited, an Indian-based company engaged in the construction and development of residential and commercial properties, has experienced a 5 per cent increase in stocks following its announcement to acquire a 70 per cent stake in Daxon Aluminium Private Limited for only INR 56,000 (US$653.11).

Upon the announcement, the company’s shares rose to INR 302.30 (US$3.53) per share from its previous closing price of INR 287.95 (US$3.36) per share.

After the completion of the acquisition, which is scheduled in February 2025, Daxon Aluminium, the producer of aluminium tubes, coils, foils, and extrusions, will become a subsidiary of VR Infraspace, complimenting the latter’s diversification goals into aluminium manufacturing.

Specialised in residential projects offering luxurious living spaces and commercial developments, VR Infraspace earned strong revenue in H1 FY2024-25, reaching INR 13.14 crore (US$1.532 million) against INR 7.27 crore (US$0.85 million) a year ago. Over the past three years, the company’s revenue and net profit rose at a CAGR of 13.48 per cent and 44.22 per cent, respectively.

As of September 2024, 72.97 per cent of stakes in VR Infraspace Limited were owned by promoters and 27.03 per cent by the public.