The Board of Directors of The Bombay Dyeing and Manufacturing Company Ltd. (BDMC) on Wednesday permitted a proposal to promote a land parcel of about 22 acres (together with the related FSI) in Worli, Mumbai, to Goisu Realty Private Ltd. (a subsidiary of Sumitomo Realty & Development Company Ltd) in two phases, for a complete consideration of about ₹5,200 crore topic to approval of its shareholders.
Post shareholders’ approval, BDMC would obtain about ₹4,675 crore from the client for Phase-I and the stability quantity of about ₹525 crore upon fulfilment of sure circumstances by BDMC and execution and consummation of the definitive agreements for Phase- II, the corporate mentioned in a press release.
“On completion of the proposed transaction, the company will be able to record a pre-tax profit in excess of ₹4,300 crore and report a strong positive net worth,” Chairman Nusli Wadia mentioned in a press release.
He mentioned the deal would assist the corporate to extinguish all its borrowings thereby saving curiosity prices and releasing the cost on encumbered property. It would additionally assist in having a sturdy treasury stability to fund the longer term realty initiatives, he added.
Mr. Wadia mentioned that the Board had additionally, in-principle, permitted the event of unutilised land parcels accessible with the corporate which have the potential to create about 3.5 million sq. ft of residential/business property and generate a income of about ₹15,000 crore over the following few years.
“The development will be planned judiciously in phases to manage company’s cashflows efficiently. The company will also evaluate other joint development and partnership opportunities to create a steady pipeline of future revenue and profits,” he added.
Source: www.thehindu.com
