Omaxe shares jump 16% after announcing an investment 4x its market cap for new vertical

Shares of Omaxe Ltd jumped nearly 16% on Monday, June 29, after the real estate developer launched a dedicated hospitality vertical with a planned investment of ₹6,200 crore over the next four to five years to develop 19 hotels across 13 cities in five states.

This is its biggest single-day gain since December 23, 2025, when the stock had surged 20%. The planned investment is also around four times the company's market cap of ₹1,620 crore.

In an exchange filing, the company said the proposed investment, subject to project-specific, regulatory and other necessary approvals, will be used to develop nearly 5 million square feet of hospitality assets across high-growth urban centres, pilgrimage destinations and transit corridors.

The company said the hospitality developments will be integrated with its existing ecosystem of townships, mixed-use developments, commercial destinations and urban infrastructure projects.

Of the 19 planned hotels, 12 will be located in Uttar Pradesh, including two each in Ayodhya, Kaushambi and Vrindavan, three in Lucknow, and one each in Prayagraj, Ghaziabad and Gorakhpur.

Omaxe will also develop one hotel each in New Delhi, Faridabad and Ujjain, along with four hotels across Chandigarh, Amritsar and Ludhiana, including two properties in Chandigarh.

Among the marquee projects is a 158-key Gateway Hotel by Indian Hotels Company Ltd. (IHCL) at The Omaxe State in Dwarka, New Delhi, which is being developed under a public-private partnership (PPP) model with the Delhi Development Authority (DDA).

The company also plans to develop transit-oriented hospitality infrastructure through its PPP projects with the Uttar Pradesh State Road Transport Corporation (UPSRTC).

The hospitality portfolio will cater to business travel, leisure tourism, destination weddings, meetings, incentives, conferences and exhibitions (MICE), and religious tourism. It will include a mix of midscale and upscale branded hotels, luxury properties, high-capacity pilgrimage hotels, serviced apartments and extended-stay studios.

The company said that, based on current business assumptions and subject to project execution, occupancy levels, regulatory approvals and market conditions, the hospitality business has the potential to generate around ₹1,000 crore in annual revenue once the portfolio stabilises.

Omaxe added that it is in advanced discussions with domestic and international hospitality operators for branding and management partnerships, with formal announcements to be made after definitive agreements are signed.

Shares of the company jumped 15.9% following the announcement to hit an intraday high of ₹89.85 apiece on Monday. The stock was up 14.5% at 88.68 apeice at 11.45 am. It has gained near;y 10% this year, so far.

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