Orbit Corp flares up 6% on SC nod for redevelopment
Shares of Orbit Corp, which focuses on redevelopment projects in southern Mumbai, surged more than 6 per cent after the Supreme Court on Thursday cleared a Maharashtra development control rule allowing realtors to enjoy floor space index of three ...
By ET Online |
MUMBAI: Shares of Orbit Corp, which focuses on redevelopment projects in southern Mumbai, surged more than 6 per cent after the Supreme Court on Thursday cleared a Maharashtra development control rule allowing realtors to enjoy floor space index of three to seven times, allowing them to build more vertically.
The SC verdict brings to end a prolonged legal battle over one of the most contentious issues in Mumbai. According to reports, close to 19,642 old, cess buildings in South Mumbai will now be available for redevelopment.
According to the amended rules, developers can get up to 2.5 or even higher FSI for re-development of chawls constructed before 1940. For chawls constructed after 1940, developers will get, as an incentive, 50% additional FSI of the utilised area for rehabilitating existing tenants.
At 10:30 am, the company's shares were up 6.19 per cent at Rs 324. Lok Housing, another city-based developer, was also up 2.5 per cent at Rs 51.40.
However, the BSE Realty Index remained subdued in line with the general market weakness.
The SC verdict brings to end a prolonged legal battle over one of the most contentious issues in Mumbai. According to reports, close to 19,642 old, cess buildings in South Mumbai will now be available for redevelopment.
According to the amended rules, developers can get up to 2.5 or even higher FSI for re-development of chawls constructed before 1940. For chawls constructed after 1940, developers will get, as an incentive, 50% additional FSI of the utilised area for rehabilitating existing tenants.
At 10:30 am, the company's shares were up 6.19 per cent at Rs 324. Lok Housing, another city-based developer, was also up 2.5 per cent at Rs 51.40.
However, the BSE Realty Index remained subdued in line with the general market weakness.
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