Mahindra Lifespaces tanked over 7% at market open on Friday as the company announced that the company’s current MD & CEO, Arvind Subramanian is stepping down.

What Happened: The realtor announced that Subramanian who has been heading the company since May 2020 will be succeeded by Amit Kumar Sinha in May 2023. The company in a regulatory said that Subramanian has decided to move on to pursue his personal interests outside the Company.

The company also announced that Sinha has been appointed for a five-year term till May 2028. Sinha joined the company in November 2020, and as per the company’s statement he led “several high-impact projects covering growth, transformation, and capital allocation across Group companies.” He has over 18 years of experience and prior to joining the Mahindra Group, he was a Senior Partner and Director with Bain & Company.

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The markets however seem to have not liked the development as the company’s shares fell over 7% to reach Friday’s intraday low of ₹348.30.

However, domestic brokerage firm ICICI Securities in its latest research note remained positive on the stock. The firm maintained the ‘buy’ rating for the stock with a target price of ₹483. That translates to an around 28% upside from the stock’s last closing price of ₹377.95. The firm said that the management transition comes at a time “when the wheels for growth have been already set in motion and barring any large churn in department heads ensuring continuity in growth plans should not be a major hurdle.”

Price Action: Shares of Mahindra Lifespaces were down 6.31% to trade at ₹354.10 in the early hours of trading on Friday.

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