Prestige Estates Shares Gain On Tie-Up For A Chennai IT Park

Shares of Prestige Estates Projects Ltd. rose on Thursday after its unit entered into a joint venture with WS Industries (India) Ltd. to develop an IT park in Chennai.

Prestige Exora Business Parks Ltd. tied up with WS Industries for the development of IT and IT-enabled services and parks at a 6.53-acre property in Chennai, Prestige Estates said on Wednesday.

WS Industries plans to develop the project through subsidiary WS Insulators Pvt. The agreement is subject to the completion of technical and legal due diligence and approvals.

Shares of Prestige Estates rose 3.73% intra-day before paring gains to trade 2.4% higher at Rs 590.95 as of 11.15 am compared to a 0.31% advance in the NSE Nifty 50.

Total traded volume so far in the day stood at 1.7 times its 30-day average. The relative strength index was at 70.13, implying that the stock may be overbought.

Of the 19 analysts tracking the company, 18 maintain a 'buy' and one recommends a 'sell' on the stock, according to Bloomberg data. The average 12-month consensus price target implies an upside of 1.8%.