India's Wadia-owned Bombay Dyeing to sell land to Japan's Sumitomo for $627 mln (updated)
13/09/2023 14:45
(Adds sale details in paragraphs 2-5, company background in
6-7)
BENGALURU, Sept 13 (Reuters) -
India's Bombay Dyeing and Manufacturing Co Ltd BDYN.NS
will sell a land parcel in Mumbai for about 52 billion rupees
($626.62 million) to a unit of Japan's Sumitomo Realty and
Development Co 8830.T , the retail and textiles company said on
Wednesday.
The sale of the 22-acre land will help the company
record a pretax profit in excess of 43 billion rupees ($518.45
million), Bombay Dyeing said.
It will also help the company extinguish all its
borrowings and pay dividends in the future, it added.
Bombay Dyeing, which changed its strategy in March 2022
to also focus on the realty business, will also develop
unutilised land parcels of the company to create about 3.5
million square feet of residential or commercial property,
helping it to generate revenue of 150 billion rupees over the
next few years.
The land sale will help the company fund future realty
projects, it added.
Last month, the Mumbai-based company reported a
consolidated net loss of 1.20 billion rupees for the June
quarter, bigger than 768.2 million rupees a year earlier.
The Wadia group has been facing troubles after its Go
First airlines filed for bankruptcy in May, blaming "faulty"
Pratt & Whitney engines for the grounding of about half its
fleet.
($1 = 82.9855 Indian rupees)
(Reporting by Nishit Navin in Bengaluru; Editing by Maju
Samuel)
((Nishit.Navin@thomsonreuters.com;))