UK fund buy talk lifts Rajeshwari Foundation

Stock of Rajeshwari Foundations, a Chennai-based real estate company, has risen around 14% over the past one month. According to dealers, buzz is that a UK-based real estate fund is planning to invest around Rs 50-60 crore in the company that constructs bungalows under the brand name of ‘RGL Dream Bungalow’.
The company has chalked out expansion plans worth a total of Rs 25 crore and has already identified 20 acres of land in Chennai, they added. The grapevine further adds that the company proposes to set up a mega township of 450 bungalows in two phases.
Some dealers were also heard talking about a GDR issue in the range of $30-40 million. Meanwhile, an email sent to the company remained unanswered till the time of going to press.
On Wednesday, the stock hit the upper end of its 5% intra-day circuit filter, before closing at Rs 37, up 4.1%. Nearly 46,000 shares changed hands, as against the two-week average of 27,354 shares on the BSE.

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