This S&P BSE Smallcap stock rose 17% within the first half hour of markets opening on Thursday with volumes that were 6x the weekly and monthly average volumes.

The stock is now trading at Rs. 163.30, up 16.3% from previous close of Rs. 140.65. The stock hit 20% upper circuit on Wednesday as well. The market cap of this stock is Rs. 3,365 crore and is 4.3% away from 52 week high; 16.3% and 79.5% from its 20 day and 200 day moving averages respectively. 

The Bombay Dyeing and Manufacturing Company Limited (“Bombay Dyeing”) produces and sells polyester staple fiber products in India. The company’s stock is also a multibagger, returning 106% YTD, meaning if you invested Rs. 1 lakh into the company at the start of this year, it would have been worth Rs. 2.06 lakh now. 

Bombay Dyeing announced in a filing dated 13th September 2023 that the company’s board approved the proposal to sell the land parcel of approx. 22 acre (along with the associated FSI) in Worli, Mumbai to Goisu Realty Private Limited (a subsidiary of Sumitomo Realty & Development Company Limited) in 2 phases, for a total consideration of about Rs. 5,200 crore, subject to approval of its shareholders. 

Upon approval of Shareholders, BDMC 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 by Bombay Dyeing and execution & consummation of the definitive agreements thereto for Phase- II.

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 this transaction, report a strong positive net worth, extinguish all its borrowings thereby saving interest costs and releasing the charge on encumbered assets, pay dividend in future, have a strong treasury balance to fund the future realty projects.

The sale is in line with the strategic outline laid out by the board for the company’s trajectory in March 2022; the key points of which were: focusing on realty business for future growth and profitability. accelerating sale of flats in Island city center, in Dadar, monetizing its land bank. deleveraging the company by retiring its borrowings & improving credit rating, developing the unutilized land parcels of the company, exploring joint development opportunities.

Written by Sandeep R


The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

To stay updated with the Latest Stock Market news, download our app here!

For editorial purposes, contact news@tradebrains.in

Start Your Stock Market Journey Today!

Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!