Realty stock jumps 14% after Co. to invest ₹500 Cr in modern luxury project in Ludhiana

SYNOPSIS: Omaxe Limited announced Omaxe Chowk, a Rs. 500 crore mixed-use high-street project in Ludhiana’s Ghumar Mandi, combining organised retail, wedding-focused commerce, and luxury residences within a modern urban destination.

During Tuesday’s trading session, shares of one of India’s leading real estate developers surged nearly 14 percent on BSE, after the company announced investing Rs. 500 crore in Ludhiana to launch the mixed-use Omaxe Chowk project.

At 12:26 p.m., shares of Omaxe Limited were trading in the green at Rs. 81.07 on BSE, up by around 12 percent, compared to its previous closing price of Rs. 72.58, with a market cap of Rs. 1,482.7 crores. The stock has delivered negative returns of around 7 percent in one year, but has surged by over 22 percent in the last one month.

What’s the News

As per its latest regulatory filing, Omaxe Limited has announced Omaxe Chowk, Ludhiana, a modern mixed-use high-street development designed to elevate organised retail and premium residential living in the city. 

Located at Ghumar Mandi, one of Ludhiana’s most well-known and established commercial and wedding shopping markets, the project is positioned as an integrated urban destination that blends retail, lifestyle, and luxury residences within a single, well-planned development.

The land parcel was secured through a competitive bidding process conducted by the Rail Land Development Authority (RLDA) and is being developed on a leasehold basis. Spanning around 5.25 acres and involving a total investment of Rs. 500 crore, the project aims to introduce scale, structure, and modern urban design to an already high-footfall market. 

Omaxe Chowk reflects a broader evolution in urban retail, where shopping increasingly intersects with social, lifestyle, and experiential consumption. Envisioned as a modern high-street format, the development integrates wedding shopping, jewellery, fashion, destination dining, entertainment, and luxury residences into a unified destination.

The project seeks to offer a more organised, comfortable, and immersive alternative to traditional market areas, while staying closely connected to Ludhiana’s established commercial character and consumer behaviour.

Omaxe Chowk is expected to create substantial local employment during the construction phase, followed by long-term job opportunities across retail, food and beverage, security, maintenance, and facility management. By attracting leading brands, visitors, and large-scale events, the project is likely to enhance footfall, support neighbouring businesses, and contribute to sustained economic activity in Ludhiana.

Developed as a public–private partnership (PPP), the project is being executed under an agreement between the Rail Land Development Authority (RLDA) and Ludhiana Wholesale Market Private Limited, a wholly owned subsidiary of Omaxe Limited. The development is scheduled for completion in line with RERA timelines by June 2030.

Financials

Omaxe reported a marginal decline in revenue from operations, experiencing a year-on-year decrease of more than 17 percent, from Rs. 389 crores in Q2 FY25 to Rs. 321 crores in Q2 FY26. Meanwhile, its net loss narrowed during the same period from Rs. 239 crores to Rs. 166 crores, representing an improvement of around 31 percent YoY.

Omaxe Limited is mainly engaged in the business of developing real estate properties, with a diverse portfolio covering residential, commercial, retail and integrated township projects. It is one of India’s leading and most trusted real estate development companies with large land holdings.  

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