New Delhi- In the aftermath of the India vs Maldives controversy, Indian investors are turning their attention to Lakshadweep, with Praveg, a Gujarat-based smallcap company, at the forefront. The company recently secured a contract to develop 50 tents in the Union Territory, driving its shares to a remarkable 43% surge in just three trading sessions.
Praveg's Noteworthy Rally
Shares of Praveg, renowned for its luxury tent resorts in tourist destinations, experienced a substantial rally of 17% in a single day, reaching an all-time high of Rs 1,187.95. The momentum gained further traction after Prime Minister Narendra Modi shared images of his visit to the pristine beaches of Lakshadweep, contributing to a 4% surge in Praveg shares on Friday. The rally intensified on Monday, culminating in a 17.5% gain, coinciding with the trending hashtags #BoycottMaldives and #ChaloLakshadweep on social media platforms.
Investor Interest Amplified
The controversy surrounding derogatory remarks by Maldivian politicians about PM Modi's Lakshadweep visit has sparked a surge in interest from investors. Praveg, having secured a work order for the development of 50 tents on Agatti Island, has positioned itself as a key player in the region. The three-year contract, extendable for an additional two years, includes the operation, maintenance, and management of the tents, offering commercial activities such as scuba diving, destination weddings, and corporate functions.
Cultural Richness and Aquatic Beauty of Lakshadweep
Agatti Island, where Praveg's development will take place, boasts diverse aquatic life and one of India's most stunning coral reefs. Praveg highlights the cultural richness of the island, marked by vibrant festivals and celebrations, adding a unique dimension to the project.
Strategic Moves in the Hospitality Sector
With this development, Praveg will expand its portfolio to nine operational properties and twelve under development. The stock's remarkable performance over the last six months aligns with the upswing in the hospitality sector, driven by high demand surpassing supply and escalating room rents.
Industry-Wide Impact
The positive momentum extends beyond Praveg, with Easy Trip Planners witnessing a 6% increase in shares, reflecting the travel agent's decision to suspend flight bookings to Maldives and encourage exploration of Indian islands like Lakshadweep. Additionally, Indian Hotels, a Tata Group company, plans to introduce two Taj-branded resorts on the islands of Suheli and Kadmat in Lakshadweep by 2026, propelling a 2% increase in its shares.
Lakshadweep emerges not only as a promising investment destination but also as a catalyst shaping strategic moves within the hospitality and travel sectors.
