Praveg Shares Surge 20% Amid 'Chalo Lakshadweep' Boost and India-Maldives Row

In the backdrop of the escalating India-Maldives row and the 'Chalo Lakshadweep' tourism push, shares of the Ahmedabad-based small-cap company, Praveg, witnessed a significant 20% surge. The tourism promotion, endorsed by various celebrities, turned out to be a boon for this luxury resort company currently developing a tent city in Lakshadweep.

Praveg's shares reached a 52-week high, hitting ₹1037.50 on Monday, as investors discovered the connection between the Ahmedabad firm and Lakshadweep. The company's involvement in the 'Chalo Lakshadweep' campaign hinted at a potential spike in revenue and sales.

The spotlight on Praveg intensified after it secured a work order from the Union Territory of Lakshadweep to establish, maintain, and manage at least 50 tents at the Agatti Islands, transforming it into a luxury tourist destination. The three-year work order, extendable up to two years, promises various commercial activities for tourists, including scuba diving, destination weddings, and corporate functions, as reported by the Economic Times.

As a testament to the campaign's impact, the global search interest in Lakshadweep reached its all-time high in 20 years, according to government platform MyGov, driven by Prime Minister Narendra Modi's recent visit.

The India-Maldives online skirmish began with PM Modi sharing photos of his Lakshadweep visit on January 4, sparking comparisons between Lakshadweep and Maldives. The latter heavily relies on Indian tourism. While there was no official confirmation of a Maldivian link to the Lakshadweep tourism promotion, several politicians from the neighboring country used derogatory language towards PM Modi, triggering a social media backlash and calls for boycotting the Maldives by Indians.

In response, Indian celebrities advocated exploring Lakshadweep and other domestic islands as alternatives to the Maldives, further contributing to the momentum of the 'Chalo Lakshadweep' campaign.