Bombay Dyeing shares hit 20% upper circuit, scale 52-week high on Mumbai land deal
Shares of 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 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.
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 mill workers on its portion ..
And last year, the Japanese corporation bagged a tender floated by the MMRDA for two land parcels in BKC for Rs 2,067 crore.
With 886 group companies, Sumitomo Corporation is also into development and operations of office buildings, retail facilities and residences as well as logistic facilities and real estate funds.
arlier, a public notice was issued by the law firm Wadia Ghandy on behalf of its unnamed client, wanting to investigate the right, title and interest of the Bombay Dyeing and Manufacturing Co Ltd land measuring over one lakh sq m at Worli.
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