Kansai Nerolac Paints Ltd. will sell its idle land parcel in Lower Parel for Rs 726 crore.
The company's board approved a proposal for monetisation of the idle land parcels that are not being put to productive use, according to its exchange filing.
The paint manufacturer has entered into an agreement for sale with Aethon Developers Pvt., a subsidiary of Runwal Developers Pvt. for the sale of the land parcel.
The sale is subject to the completion of procedures and approvals as may be necessary in this regard, the company said.
Runwal Developers is a real estate developer with over 65 projects and millions of square feet of development.
Morgan Stanley, in its Dec. 10 note, said that the industrial coating business of Kansai Nerolac offers favourable growth prospects even as the company is looking to boost its share in decorative paints.
Better margin potential in the historically low-margin industrial business and the company's market leadership in the automotive and powder coatings segments will aid growth, it said.
Morgan Stanley has an "underweight" rating on the stock with a target price of Rs 250, implying a downside of 24%.
Shares of Kansai Nerolac Paints closed 0.87% higher at Rs 325.25 apiece on the NSE, as compared with a 0.43% advance on the benchmark Nifty 50.
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