Kansai Nerolac Paints, the country's largest paint and coating manufacturer, on December 26 said its board has given the nod to sell a land parcel in Mumbai to a subsidiary of real estate major Runwal Group for Rs 726 crore.
The land parcel is located in Lower Parel, which is one of Mumbai's prime real estate markets. It would be sold to Aethon Developers, an arm of Runwal Developers, according to a regulatory filing.
A building, which is located within the land parcel, would also be sold to the Runwal arm as part of the sale agreement.
Also Read: Mumbai real estate: Runwal Group plans to acquire 10 mn sq ft land for mixed-use development
"The Board of Directors of the company has approved a proposal for entering into an agreement for sale with Aethon Developers Private Limited, a subsidiary of Runwal Developers Private Limited, for the sale of the company’s land parcel at Lower Parel together with building thereon, for a consideration of Rs 726 crore," the filing stated.
"Accordingly, the company has entered into an Agreement for Sale with the Purchaser. The sale is subject to completion of procedures and approvals as may be necessary in this regard," it added.
The pact to monetise the land parcel is in line with the board's decision, taken in August 2022, to sell the company-owned lands that are not being put to productive use, Kansai Nerolac Paints noted.
The company, a subsidiary of Japan's Kansai Paint, had posted a consolidated net profit of Rs 177 crore in the quarter ending September 2023, marking a 56 percent jump as against the year-ago period.
In the trading session on December 26, Kansai Nerolac Paint's shares edged higher. The scrip settled at Rs 323.80 on the BSE, higher by half a percentage point as against the previous day's close.
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