Bombay Dyeing shares hit 20% upper circuit, scale 52-week high on Mumbai land deal
Bombay Dyeing & Manufacturing Company (BMDC) hit 20% upper circuit to scale their 52-week high of Rs 166 on the NSE on Thursday following a nod from the Wadia Group's company's Board to the proposal to sell the land parcel of about 22 acres in Worli, Mumbai to Goisu Realty, a subsidiary of Japanese realty developer Sumitomo for Rs 5,200 crore. This is Mumbai's largest land deal in terms of value.
The price action was accompanied with high volumes as over 1 crore shares traded on the NSE around 9:30 am.
The whole transaction with Sumitomo will be completed in two phases including the first tranche of Rs 4,675 crore.
The balance Rs 525 crore will be received upon completion of certain conditions by BDMC and execution and consummation of the definitive agreements for the second phase.
The group has decided to monetise the land parcel to repay the debt that currently stands at Rs 3,969 crore.
It has already repaid debt worth Rs 900 crore over the last one year.
Last week, tempos were lined up outside Wadia International Centre (WIC), the Wadia Group headquarters. The building was being vacated and the chairman’s office was shifted to the Bombay Dyeing property at Dadar-Naigaum.
Behind the Wadia headquarters, the Shilpa Shetty-owned Bastian restaurant too was shuttered.
According to the mill land policy, Bombay Dyeing surrendered eight acres to the BMC for recreation space and another eight acres to the state housing authority, Mhada, for public housing from its Dadar-Naigaum mill.
A BMC official said the developer will be entitled to transfer of development rights of over 82,000 sq m for surrendering part of its land to the BMC and Mhada. The housing authority has constructed buildings for transit accommodation and homes for
