Phoenix Mills to set up a luxury mall

Phoenix Mills declined 1.03% to Rs 390 at 11:41 IST on BSE on reports it plans to invest Rs 100 crore to set up a luxury mall as part of a Rs 800-crore hotel project in central Mumbai.

The stock hit a high of Rs 404 and a low of Rs 385 so far during the day. The stock had a 52-week high of Rs 560 on 17 December 2007 and the stock hit a 52-week low of Rs 325 on 22 January 2008.

The company’s current equity is Rs 27.14 crore. Face value per share is Rs 2.

The current price of Rs 390 discounts its Q4 March 2008 annualised EPS of Rs 39.61, by a PE multiple of 9.84.

The 2,00,000 square foot luxury mall will start operations in March 2009, Phoenix Mills director Atul Ruia said on Thursday, 15 May2008. Phoenix is building a 400-room hotel, which is expected to start operations in March 2010.

The project is funded through a mix of debt and equity. Phoenix Mills has raised about Rs 1300 crore through equity placements with two institutional investors in the past 12 months and has raised Rs 400 crore as debt. Phoenix Mills is currently developing 7 hotels and 15 malls across the country, Ruia said.

The company’s net profit rose 26% to Rs 134.39 crore on 56.3% rise in sales to Rs 23.08 crore in Q4 March 2008 over Q4 March 2007. The other income stood at Rs 137.47 crore in Q4 March 2008.

Phoenix Mills is into retail-led mixed-use development segment.