‘Chalo Lakshadweep’ boosted shares of this Gujarat-based firm by 20%. Here's how
In the midst of the India-Maldives row and push for Lakshadweep tourism, the shares of a small cap firm saw a 20 percent spike.
The row between India and Maldives escalated as many celebrities and notable personalities came out in support of promoting tourism to Lakshadweep. However, this tourism campaign came as a blessing for the stock of a small-cap firm.
Praveg, a small-cap company based in Ahmedabad, saw its shares soar 20 per cent in view of the 'Chalo Lakshadweep' campaign. Notably, Praveg is a luxury resort company which is currently developing a tent city in Lakshadweep.
Shares of Praveg hit their 52-week-high on Monday after rallying to a high of ₹1037.50, as shareholders discovered the link of the Ahmedabad firm with Lakshadweep, and how it could see a spike in revenue and sales amid the 'Chalo Lakshadweep' campaign.
Praveg shares were in view after it received a work order from the Union Territory of Lakshadweep to set up, maintain and manage at least 50 tents at the Agatti Islands, turning it into a luxury tourist attraction.
This luxury tent city will offer many commercial activities to tourists such as scuba diving, destination weddings, corporate functions etc. The work order is for three years, and can be extended by up to two years, reported Economic Times.
Government platform MyGov also said on Monday that the global search interest regarding Lakshadweep touched its all-time high in 20 years, prompted by Prime Minister Narendra Modi's visit.
India-Maldives row and 'Chalo Lakshadweep'
The online skirmish began when Prime Minister Narendra Modi shared photos from his visit to Lakshadweep on January 4, where he was seen snorkelling and exploring the beaches. Soon, netizens started comparisons between Lakshadweep and Maldives, with the tourism of the latter hugely driven by Indians.
While no government official said anything about the Lakshadweep tourism promotion having a Maldivian link, multiple politicians from the neighbouring country started using derogatory and abusive language towards PM Modi, causing a massive social media backlash and boycott of the Maldives by Indians.
Several Indian celebrities jumped on the bandwagon, asking Indians to explore Lakshadweep and other Indian islands and locales, suggesting them as an alternative to Maldives.
