Bombay Dyeing stock zooms 20% after selling land parcel to Sumitomo Realty

Textile business company Bombay Dyeing and Manufacturing Company’s stock rallied, on Thursday, after the company sold a land parcel of about 22 acres in Worli, Mumbai to Goisu Realty Private Limited, a subsidiary of Sumitomo Realty & Development Company Limited, for Rs 5,200 crore.

The stock surged as much as 20 per cent to hit fresh 52-week high of Rs 168.50 per share. The stock had closed at Rs 140.45 per share, on Wednesday (September 13).

Deal details

Upon approval of Shareholders, Bombay Dyeing will receive about Rs 4,675 crore from the Buyer (Goisu Realty) for Phase-I. The balance amount of about Rs 525 crore will be received upon completion of certain conditions by BDMC and execution & consummation of the definitive agreements thereto for Phase- II.

Furthermore, the board of directors also gave in-principle nod for the development of the unutilised land parcels available with the company having a potential to create about 3.5 million square feet of residential/commercial property, and generate a revenue of about Rs 15,000 crore over the next few years. 

Financial performance 

The company’s losses widened in the June quarter as the company reported a net loss of Rs 120 crore as opposed to a net loss of 77 crore in the same quarter last year.

Its revenue plunged 18 per cent to Rs 498 crore against Rs 606 crore in the same quarter previous fiscal. However, the company’s expenses fell 14.5 per cent to Rs 617 crore against Rs 722 crore in the same quarter last year.

The market capitalisation of the company is Rs 3,369.62 crore. The 52-week high of the stock is Rs 168.50 per share, while its 52-week low is Rs 53.37 per share.