Budget Reaction - Mahindra Lifespaces - Affordable Housing impact

Mr Sriram Mahadevan, Business Head - Happinest, Mahindra Lifespaces on announcements pertaining to affordable housing in Budget 2016.

Mahindra Lifespace Developers Ltd., the real estate and infrastructure development business of the $16.9 billion Mahindra Group, is a leader in sustainable urban development, through the creation of residential and integrated large format developments. Mahindra Lifespaces has presence in Affordable Housing segment through its offering 'Happinest'.

"It is heartening to note how the government has taken cognizance of the importance of the Affordable Housing segment towards making 'Housing For All by 2022' a possibility. This budget provides some of the long standing stimulus needed to drive growth in the segment. Additional exemption of Rs. 50,000 on housing loans up to Rs. 35 lakh for first time home buyers (on homes that cost upto Rs. 50 lakh) coupled with exemption of service tax on construction of affordable houses up to 60 square metres will reduce the cost of home ownership for the price-sensitive affordable home buyer. Furthermore, the exemption on profits for developers on housing projects (upto 30 sq. metres in four metros, 60 sq. metres in other cities) will incentivize increased participation by developers towards creation of much needed affordable housing stock in the country. Overall, these are supportive policies in the right direction that can boost consumer confidence and spur development in the segment."

Shares of MAHINDRA LIFESPACE DEVELOPERS LTD. was last trading in BSE at Rs.444 as compared to the previous close of Rs. 443. The total number of shares traded during the day was 732 in over 102 trades.

The stock hit an intraday high of Rs. 452.8 and intraday low of 440.1. The net turnover during the day was Rs. 326413.

Source : Equity Bulls

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