NEW DELHI: Wadia family-promoted Bombay Dyeing and Manufacturing Company (BDMC) has approved a proposal to sell a land parcel of about 22 acres in Worli, Mumbai, to Goisu Realty in two phases, for a consideration of about Rs 5,200 crore as it aims to cut down its borrowing and become debt free.
Once approved by its shareholders, BDMC will receive about Rs 4,675 crore from Goisu, a subsidiary of Sumitomo Realty & Development, for Phase I. The balance amount of about Rs 525 crore will be received upon completion of certain terms and conditions.
Nusli Wadia, Chairman of Bombay Dying, said after the completion of the proposed transaction, the company will be able to record a pre-tax profit of over Rs 4,300 crore and report a positive net worth. This will help it to extinguish all its borrowings thereby saving interest costs and releasing the charge on encumbered assets, added Wadia.
“We are happy to report that BDMC was able to generate a Net Revenue of about Rs 1,050 crore between April 2022 and June 2023, via the sale of the flats in ICC by focused execution, leading to a cut in the company’s borrowings by about Rs 900 crore in the same period,” said Wadia. In May 2023, CARE Ratings raised concerns over BDMC’s ability to service its debt during fiscal years 2024 and 2025.