Bombay Dyeing said it will receive about Rs 4,675 crore from the buyer for Phase-I. The balance amount of about Rs 525 crore will be received upon completion of certain conditions. 
Special 
Bombay Dyeing said it will receive about Rs 4,675 crore from the buyer for Phase-I. The balance amount of about Rs 525 crore will be received upon completion of certain conditions. Shares of Bombay Dyeing & Manufacturing Company will be in focus on Thursday after the company's board approved a proposal to sell the land parcel of about 22 acres in Mumbai's Worli to a subsidiary of Japanese conglomerate Sumitomo for Rs 5,200 crore. At Wednesday's close, the market capitalistaion (m-cap) of Bombay Dyeing stood at Rs 2,900.78 crore on BSE, thanks to a 122 per cent rally on the counter in the last six months.
In a filing to BSE, Bombay Dyeing said it will receive about Rs 4,675 crore from the buyer for Phase-I. The balance amount of about Rs 525 crore will be received upon completion of certain conditions and execution & consummation of the definitive agreements thereto for Phase- II.
Bombay Dyeing had earlier generated a net revenue of about Rs 1,050 crore between April 2022 and June 2023, through sale of the flats in ICC by focused execution, leading to a reduction in the company’s borrowings by about Rs. 900 crore.
Chairman Nusli Wadia, said: “I am happy to inform that BDMC is entering into agreements with Sumitomo group for sale of about 22 acres of land (along with the associated FSI) in Worli, Mumbai for a total consideration of about Rs. 5,200 crore."
On completion of the proposed transaction, the company will be able to record a pre-tax profit in excess of Rs 4,300 crore on account of the transaction. It would report a strong positive net worth and extinguish all its borrowings thereby saving interest costs and releasing the charge on encumbered assets. Bombay Dyeing said it may also pay dividend in future. Bombay Dyeing said it may have a strong treasury balance to fund the future realty projects.
Meanwhile, the company board has also, in-principle, approved the development of the unu�lised 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. The development will be planned judiciously in phases to manage company’s cashflows efficiently, the company said.
“The company will also evaluate other joint development and partnership opportunities to create a steady pipeline of future revenue and profits,” it said.
Disclaimer: Recommendations provided in this article and/ or any reports attached or relied on herein are authored by an external party. The views expressed herein are those of the respective authors/ entities, and do not represent the views of Business Today (BT). BT does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. BT further urges you to consult your financial adviser and seek independent advice regarding the contents herein, including stock investments, mutual funds, general market risks etc.
Copyright©2025 Living Media India Limited. For reprint rights: Syndications Today
