The Board of Directors of The Bombay Dyeing and Manufacturing Company (BDMC) has approved the proposal to sell the land parcel of about 22 acres (along with the associated FSI) in Worli, Mumbai to Goisu Realty (a subsidiary of Sumitomo Realty & Development Company) in 2 phases, for a total consideration of about Rs 5,200 cr, subject to approval of its shareholders. Upon approval, BDMC will receive about Rs 4,675 cr for Phase-I.
Nusli Wadia, chairman, said: “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 cr. On completion of the proposed transaction, the company will be able to: Record a pre-tax profit in excess of Rs 4,300 cr on account of this transaction; extinguish all its borrowings thereby saving interest costs and releasing the charge on encumbered assets; pay dividend in future.
BDMC was able to generate a net revenue of about Rs 1,050 cr 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 crs in the same period.
