Sharanam Infraproject Share Price Hits Upper Circuit Of 5% After UAE Subsidiary Approval

Sharanam Infraproject and Trading Ltd has made headlines as its share price hits upper circuit following a strategic board decision. The company, engaged in real estate and building materials, announced its plans to expand internationally through a wholly owned subsidiary in Dubai, UAE. 

Sharanam Infraproject Share Price Hits 5% Upper Circuit

As of 10:35 AM on June 20, 2025, Sharanam Infraproject and Trading share price hit a 5% upper circuit limit. The upward movement in the share price comes on the heels of a key strategic announcement from the company’s board of directors.

Company Approves UAE Subsidiary With ₹35–40 Crore Investment

The board has approved the incorporation of a wholly owned subsidiary in Dubai, United Arab Emirates. The company plans to invest approximately AED 15.5 million to AED 18 million, translating to ₹35–40 crore. This capital infusion, expected over the next 6 to 9 months, will cover working capital and deal facilitation costs.

Strategic Expansion Through Asset Light Model

The Dubai-based subsidiary is intended to function as the company’s international arm. Its key objective will be the acquisition of strategically located land parcels, with a plan to resell them to institutional buyers or large developers. The operational model focuses on a low-risk, asset light approach, ensuring:

• Minimal balance sheet exposure for the parent company
• Faster capital rotation
• Sustainable and scalable cash flows

This structure is designed to allow Sharanam to participate in international real estate deals without the overhead burden of long-term asset ownership.

Strong Financial Performance In FY2024–25

For the financial year ended FY2024–25, Sharanam reported a robust improvement in performance. The company registered a net profit of ₹5.08 crore, a significant jump from ₹3 lakh in the previous year. Revenue also rose to ₹37.4 crore in FY25 from ₹1.76 crore in FY24, reflecting strong business growth and improved operational execution.

Rights Issue Of ₹48 Crore To Fund Expansion

In February 2025, the company raised ₹48 crore through a rights issue. The funds were earmarked for expansion plans, including the working capital requirements of the newly proposed UAE venture. This move underlines the company's focus on strategic capital allocation to fuel future growth.

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Overview Of Business Operations

Incorporated in February 1992, Sharanam Infraproject and Trading Ltd is involved in the retail supply of building materials and real estate services. Its activities include:

• Buying and selling of land and buildings
• Renting, mortgaging, and maintaining properties
• Construction, reconstruction, extension, and demolition of buildings
• Repair and maintenance of properties

Additionally, the company plays a key role in the supply chain of steel products, including seamless and welded pipes, blooms, slabs, ERW, HFI, and LSAW pipes. These materials are widely used across oil and gas, real estate, and infrastructure projects, particularly in Gujarat and surrounding states.

Conclusion

With a strong financial foundation, recent capital infusion, and a strategic move into the UAE real estate market, Sharanam Infraproject and Trading Ltd is positioning itself for global relevance. The incorporation of its international subsidiary aligns with the company’s aim to adopt a low-risk model while exploring high-potential real estate deals.

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