Shares of a textile company zoomed 11.48 per cent on Tuesday’s early trades to touch a fresh 52-week high of ₹ 151.45 apiece on the National Stock Exchange (NSE). This happened after it announced that it had settled a dispute with Axis Bank. At 02:55 PM, its shares were trading at ₹ 149.85 apiece.
Bombay Dyeing & Manufacturing Company is engaged in the businesses of Polyester Staple Fibre and Retail (Textiles) and Real Estate Development.
The company and Axis Bank have been engaged in certain disputes/ arbitration. Axis Bank challenged the award dated March 11, 2022, passed by the Hon’ble Arbitrator in favour of Bombay Dyeing & Manufacturing Company.
As per a filing by Bombay Dyeing on August 14, 2023, Axis Bank alleged that the company failed to provide timely possession of the property along with exclusive and irrevocable right of the building known as Wadia Tower as per the terms of the agreement dated May 15, 2010. It further alleged that the company is in breach of the terms of the said Agreement and is not entitled to any reliefs granted to it under the said Award.
Bombay Dyeing & Manufacturing Company executed a conveyance deed on Sept. 4 in favour of Axis Bank, effecting the transfer of land measuring 11,541 square metres, according to an exchange filing on Monday. This deed will enable independent and exclusive access to Axis Bank’s headquarters, for an approximate sum of ₹ 149 Crs., subject to conventional terms and conditions.
With a market capitalization of ₹ 2,806 crores, Bombay Dyeing & Manufacturing Company is a small-cap company. It has a low return on equity of 1.43 per cent and a negative debt-to-equity ratio of 2.92.
In the past six months, the company’s share price increased from ₹ 67.55 to ₹ 151.45 apiece, giving multibagger returns of 124.20 per cent. Therefore, an investment of ₹ 1 lakh in the company’s shares six months ago would be worth ₹ 2.24 lakhs today!
Madhuri Madhusudan Kela holds 34,16,600 shares or a 1.65 per cent stake in the company. Her holdings in the company are worth ₹ 51.19 crores as per the company’s current share price.
Written by Simran Bafna
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