The ongoing diplomatic spat between India and the Maldives has inadvertently led to unexpected gains for a small-cap firm based in Ahmedabad. Praveg, a luxury resort company, witnessed a significant uptick of 20% in its shares due to the ‘Chalo Lakshadweep’ campaign, which garnered support from celebrities and notable personalities. Here’s a closer look at how the tourism promotion became a boon for Praveg and its potential impact on the company’s revenue.
Praveg, a small-cap company based in Ahmedabad, experienced a surge in its shares as the ‘Chalo Lakshadweep’ campaign gained momentum. The company, currently in the process of developing a tent city in Lakshadweep, saw its shares reach a 52-week high, hitting ₹1037.50. Shareholders connected the dots between Praveg and the tourism campaign, anticipating a boost in revenue and sales for the luxury resort company.
The surge in Praveg’s shares was fueled by a work order from the Union Territory of Lakshadweep, directing the company to set up, maintain, and manage at least 50 tents at the Agatti Islands. This initiative aims to transform Agatti Islands into a luxury tourist attraction, offering commercial activities such as scuba diving, destination weddings, corporate functions, and more. The work order is valid for three years, with the possibility of a two-year extension, as reported by the Economic Times.
The online promotion of Lakshadweep tourism gained momentum after Prime Minister Narendra Modi’s visit to the region, sharing photos of his snorkeling adventure. This triggered a social media comparison between Lakshadweep and the Maldives, sparking an online feud. In response, several Indian celebrities advocated for exploring Lakshadweep and other Indian islands as an alternative to the Maldives.
As the ‘Chalo Lakshadweep’ campaign garnered global attention, the stock surge for Praveg showcased the direct impact of tourism promotion on businesses associated with the region. This unexpected turn of events highlights the interconnected nature of diplomacy, tourism, and the stock market.
