Shares of Binny, which have been on a high over the last one week since its decision to get into the liquor and real estate businesses, hit a low on Tuesday though only after scaling a new high.

Over the last one week, the Chennai-based company’s stock hit a new high everyday with multi-fold growth in volumes on the BSE and breached the upper circuit everyday till Monday. Continuing its uptrend, the stock high a new high of ₹316.50 on Tuesday, but subsequently breached the lower circuit at ₹286, in line with overall market condition. The stock, in which the Tamil Nadu Government owns 1.53 per cent stake, had been on a dream run from December 8.

Asset-owning to realty

Prior to its decision on entering the new lines of businesses, Binny had had no operations but was primarily an asset-owning company. It decided to get into real estate development using its land bank in North Chennai and also move into the liquor business by merging Mohan Breweries and a subsidiary, Arthos Breweries, with itself. Mohan Breweries is fully owned by Binny’s Chairman M Nandagopal.

He told BusinessLine at the time of announcing the decision that Mohan Breweries has revenues of about ₹1,200 crore and plans to operate from a new location near Kanchipuram, about 75 km south of the city, where a factory is coming up.

Binny’s board has given in-principle approval to a plan to merge Mohan Breweries and Arthos Breweries. Following the announcements, the company entered into an agreement with Chennai-based real estate developer SPR Group to develop a modern integrated township on land it owns in Perambur, a bustling residential and commercial area, in North Chennai.

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