Bombay Dyeing and Manufacturing Company Limited (BDMC), a part of the Wadia Group, has announced its decision to sell 22 acres of land in Worli, Mumbai, to Goisu Realty Pvt, a subsidiary of Sumitomo Realty & Development Company Limited. The transaction, valued at ₹5,200 crores, represents one of Mumbai’s largest land deals.
In an exchange filing, BDMC revealed that its board of directors has approved the sale of this prime land parcel in two phases, subject to shareholder approval. Phase-I will involve the sale of approximately 22 acres along with the associated Floor Space Index (FSI) for a total consideration of about ₹4,675 crores, while Phase-II, expected to be completed upon certain conditions and the execution of definitive agreements, will bring in the remaining ₹525 crores.
The decision to monetize this land parcel is part of BDMC’s strategy to deleverage its balance sheet and strengthen its financial position to fund future real estate projects. Nusli Wadia, Chairman of the Wadia Group, expressed satisfaction with the deal, highlighting its significance for the company.
Additionally, BDMC has received in-principle approval from its board for the development of unutilized land parcels in its possession. These parcels have the potential to create approximately 3.5 million square feet of residential and commercial property, with an estimated revenue generation of around ₹15,000 crores over the coming years. The company intends to implement this development in phases to manage cash flows effectively and is also open to exploring joint development and partnership opportunities to establish a steady pipeline of future revenue and profits.
Upon the successful completion of the proposed transaction, BDMC anticipates recording a pre-tax profit exceeding ₹4,300 crores. This achievement will enable the company to extinguish all its borrowings, leading to savings in interest costs and the release of charges on encumbered assets. Additionally, it will position the company to consider paying dividends in the future.
The announcement of the land sale had a positive impact on BDMC’s share price, with its shares closing 6.93% higher at ₹140.50 apiece on the day of the announcement. The deal underscores the company’s commitment to optimizing its real estate assets and financial resources to drive growth and value creation.