Phoenix Mills is making a great splash this new year. The stock price rose almost 7% to Rs.663.10, inching pretty close to its 52-week high of Rs.679.60 and continuing to remain firmly in the green.
The stock price is reacting to the news that its has completed stake acquisition in subsidiary company, Graceworks Realty & Leisure. This was a 22.67% stake buy out from HBS Realtors for a consideration of Rs.10 crore.
Here is trying to simplify the labyrinth of cross holding - another subsidiary of Phoenix Mills, Phoenix Hospitality already holds 77.23% stake in Graceworks. In turn, Phoenix Mills holds 56.92% stake in Phoenix Hospitality. Thus its stake now in Graceworks climbs up to 66.69% and it continues to remain a subsidiary of Phoenix Mills.
This move to acquire stake is to consolidate its holdings in existing subsidiaries. Apparently, the market seems to be happy and is celebrating this news.