Bombay Dyeing stock price was locked in upper circuit of 20 percent in early trade as the company announced sale of prime location land. Bombay Dyeing board has given approval for sale of prime land in Worli. The land sale will help Bombay Dyeing to become debt free. The land will be sold for Rs 5200 crore to Goisu Realty Private Limited. The stock was up by 20 percent and market experts believe that it has potential to go higher as well.

Bombay Dyeing will receive Rs 4675 crore in the first phase and subject to certain conditions, will receive the second payment. The total value of the deal has been set at Rs 5,200 crore. Bombay Dyeing was an iconic textile mill in Mumbai. The company has been seen as a real estate company in the recent years as it held expensive land at a premium location in Mumbai. Long term investors were expecting the company to monetize the land at the right time and the current deal has been widely appreciated by market participants.

The company generated a net revenue of about Rs 1,050 crore between April 2022 and June 2023 via sale of the flats in ICC by focused execution. The company has been reducing its debt in the recent quarters, mainly through real estate activity.

In a statement, Bombay Dyeing Chairman Nusli Wadia said, “I am happy to inform that BDMC is entering into agreements with Sumitomo group for sale of about 22 acres of land (along with the associated FSI) in Worli, Mumbai for a total consideration of about Rs. 5,200 crore.”

A statement issued by the company informed, “The company will also evaluate other joint development and partnership opportunities to create a steady pipeline of future revenue and profits.”

The stock touched 52-week high of Rs 168.6 today. The stock has witnessed strong rally from yearly low of Rs 53.25.