The announcement was made after market hours on Thursday, 15 December 2011.

Meanwhile, the BSE Sensex was up 131.46 points, or 0.83%, to 15,967.93.

On BSE, 18,000 shares were traded in the counter as against an average daily volume of 41,408 shares in the past one quarter.

The stock hit a high of Rs 32.75 and a low of Rs 31.60 so far during the day. The stock had hit a 52-week low of Rs 30.05 on 30 November 2011. The stock had hit a 52-week high of Rs 69.50 on 4 January 2011.

The stock had underperformed the market over the past one month until 15 December 2011, falling 19.72% compared with the Sensex's 6.20% decline. The scrip had also underperformed the market in past one quarter, falling 30.56% as against 6.16% fall in the Sensex.

The small-cap real estate developer has an equity capital of Rs 55.84 crore. Face value per share is Rs 2.

Peninsula Land said both companies will have an equal stake in the venture, and will jointly evaluate and manage investments targeting the development of residential and commercial assets primarily in Tier I cities in India.

Peninsula Land's net profit declined 78.56% to Rs 13.67 crore on 59.64% decline in net sales to Rs 49.50 crore in Q2 September 2011 over Q2 September 2010.

Peninsula Land currently has approximately 20 million square feet (sq. ft.) under various stages of planning & development. Its strategy is to consolidate its presence in key asset classes; residential projects, commercial projects, information technology parks, special economic zones and townships.