Shares of Puravankara Projects are surging. Know why

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Shares of Puravankara Projects are surging. Know whyPuravankara Projects Ltd., a mid-sized south India-based builder, surged in Monday afternoon trade after the company said it would be basing several of its new projects out of Hyderabad, a fast growing city showing strong demand for mid-income housing in the face of a sector-wide downturn.
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Puravankara will base 12.5 percent of its new projects out of Hyderabad, totalling 5 million square feet of luxury housing and 5 million square feet of premium affordable housing segment, the company said in a press release to the exchanges.

Hyderabad is the joint capital of Andhra Pradesh and the newly formed Telangana state for the period of 10 years at least. The city is home to a major IT-industry hub and is also an industrial power house. Demand for housing is on the rise in Hyderabad and its suburbs as middle-classes step out of their older homes into newer societies and colonies.

Puravankara Projects rose 4.30 rupees, or 6.6 percent, to 68.40 rupees on the National Stock Exchange, where 66,000 shares changed hands versus the 5-day average of 64,000 shares.

Puravankara has seen its market capitalisation fall 27 percent in the past one year to 1,565 crore rupees as investors stayed away from sectors facing a cyclical downturn in demand and prices.

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Image credit: Indiatimes