Order Win / Construction Contract

Puravankara Subsidiary Receives ₹57.81 Crore LOI for Westin Hotel Project in Bengaluru

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Puravankara Limited informed exchanges that its wholly owned subsidiary, Starworth Infrastructure & Construction Limited (SICL), has received a Letter of Intent (LOI) worth ₹57.81 crore for execution of civil, structural, waterproofing and allied works for the Westin Hotel project in Whitefield, Bengaluru.

PRICE-SENSITIVE TRIGGER

Event: Receipt of Letter of Intent (LOI) by SICL

Type: Order Win / Construction Contract

Impact: Positive

Immediate Effect: The contract strengthens SICL’s order pipeline and enhances Puravankara Group’s construction execution visibility in the hospitality infrastructure segment.

Key Metrics:

Contract Value: ₹57.81 Crore
Execution Period: 20 Months
Project Type: Civil, Structural, Waterproofing & Allied Works
Contract Nature: Item Rate Contract
Entity Type: Domestic

Highlight:

Label: Order Value
Value: ₹57.81 Crore

What Happened ?

Puravankara Limited announced that its wholly owned subsidiary, Starworth Infrastructure & Construction Limited (SICL), has received a Letter of Intent from Innmar Tourism and Hotels Private Limited.

The contract relates to execution of civil, structure, waterproofing and allied works for the Westin Hotel project located near Kundalahalli Metro Station in the EPIP Area, Whitefield, Bengaluru.

The company clarified that the contract is domestic in nature and will be executed over a period of 20 months.

key highlights

Project Scope & Contract Details:

The order has been awarded by Innmar Tourism and Hotels Private Limited.
Project involves execution of civil, structural, waterproofing and allied construction works.
The work is for the Westin Hotel project located near Kundalahalli Metro Station, Whitefield, Bengaluru.
The contract is categorized as an Item Rate Contract.
Total contract value stands at ₹57.80 crore plus applicable taxes, duties and levies.
Execution timeline for the project is 20 months.
The project is classified as a domestic contract.
Puravankara confirmed that promoter/promoter group entities have no interest in the awarding entity.
The transaction does not fall under related party transactions.

Note:

The order adds to SICL’s hospitality and premium construction project portfolio and supports long-term execution revenue visibility.

Risk Analysis

Key Risks

Construction projects are exposed to raw material and labor cost inflation.
Delays in approvals, payments or site readiness may impact timelines.
Margin pressure may arise if project costs escalate significantly.
Hospitality sector execution projects often involve strict quality and delivery timelines.

Worst Case Scenario

Any prolonged delay in project execution or cost overruns could affect profitability and working capital efficiency.

Risk Level: Medium

Company Commentary

Puravankara stated that SICL has received a Letter of Intent for the Westin Hotel project in Bengaluru.
Management confirmed that SICL is a wholly owned subsidiary of Puravankara Limited.
The company disclosed that detailed information has been provided under Regulation 30 and Schedule III requirements.

Official Exchange Filing: Puravankara Limited