Bombay Dyeing to divest its textiles processing unit at Ranjangoan for Rs 230cr

Wadia group’s textile firm Bombay Dyeing & Manufacturing Company Ltd (BDMC) has received approval from its board of directors at the meeting held on 25 May to sell/dispose off its textiles processing unit situated at Ranjangaon in Maharashtra, to Delhi based Oasis Procon, a textile manufacturer established in 2004 together with all specified tangible and intangible assets in relation the the undertaking (excluding its brand name and specific liabilities) for Rs 230 crore ($36.2 million), according to a stock market disclosure.

The net proceeds from the sale of the undertaking will be utilized to repay the existing loans and reduce interest burden, or enhancement of working capital of the company or general business purpose. The sale is conditional upon the company’s shareholders’ approval and other customary closing conditions including technical, financial and legal due diligence.

As a term of the sale, the company has agreed not to directly and/or indirectly engage in the business of export of bed linen/bed linen fabric with any person in the territory of the United States of America for a period of five years from the closing date. This will not have any impact on the company’s existing retail business ‘Home & You’.

Bombay Dyeing offers linens, towels, home furnishings, leisure clothing, kids wear, etc. Earlier, the flagship firm of Wadias, the group’s interest is now diversified into several businesses, including airlines, food, chemicals, petrochemicals, plantations, light engineering and real estate.

Bombay Dyeing & Manufacturing Company is currently trading at Rs. 71.55, up by 0.10 points or 0.14% from its previous closing of Rs. 71.45 on the BSE.

The promoters holding in the company stood at 52.35% while Institutions and Non-Institutions held 16.74% and 29.56% respectively.

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