Shares of Bombay Dyeing & Manufacturing Co. surged 20% to a near five-year high on Thursday after it announced the sale of its Worli land to Sumitomo Realty's unit.
Wadia Group-owned Bombay Dyeing agreed to sell 22 acres of land to Goisu Realty Pvt., a subsidiary of Japan-based developer Sumitomo Realty & Development Co. for Rs 5,200 crore in one of India's biggest land deals to repay debt and fund future projects.
Upon shareholders' approval, Bombay Dyeing will receive about Rs 4,675 crore from the buyer for Phase I, the retail-to-real estate company said in an exchange filing. The balance amount of about Rs 525 crore will be received upon completion of certain conditions by Bombay Dyeing and execution and consummation of the definitive agreements for Phase II.
Shares of the company were trading 16.05% higher at Rs 163.05 apiece, compared to a 0.35% advance in the Nifty 50. The stock surged 20% to a near five year high of Rs 168.6 apiece during early trade on Thursday.
The stock has risen 106% on a year-to-date basis. Total traded volume stood at 23 times its 30-day average. The relative strength index was at 67.6.
Out of the 35 analysts tracking the company, 23 maintain a 'buy' rating, eight recommend a 'hold' and four suggest a 'sell' on the stock, according to Bloomberg data. The average 12-month consensus price target implies a downside of 2.9%.
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