Bombay Dyeing and MG.CO.LTD’s shares were up by 16.73 per cent after the company announced that the Board of Directors at The Bombay Dyeing and Manufacturing Company Limited (BDMC) have given their approval to sell approximately 22 acres of land, along with the associated Floor Space Index (FSI), situated in Worli, Mumbai, to Goisu Realty Private Limited, a subsidiary of Sumitomo Realty & Development Company Limited.
The transaction is set to be completed in two phases, for an estimated total of about Rs. 5,200 crore. Subject to shareholders’ approval, BDMC anticipates receiving Rs. 4,675 crore from the Buyer for Phase-I, while the remaining sum of about Rs. 525 crore will be received upon the fulfillment of specific conditions and execution of definitive agreements for Phase-II.
Chairman Nusli Wadia highlighted the benefits the company stands to gain from the transaction, including a pre-tax profit exceeding Rs. 4,300 crore and the elimination of borrowings, leading to interest cost savings and unencumbered assets.
Wadia also emphasised a focus on real estate for future growth and profitability, expediting flat sales in Island City Center, and unlocking the potential of underutilized land parcels. The Board has granted in-principle approval for the development of these land parcels, with the potential to create approximately 3.5 million square feet of residential and commercial properties, generating an estimated revenue of about Rs. 15,000 crore over the coming years. This development will be phased judiciously to ensure efficient cash flow management.
The shares were up by 16.73 per cent to Rs. 163.95 at 10.44 a.m. on the BSE.