Wadia Group’s flagship company, Bombay Dyeing and Manufacturing, may sell its polyester and DMT (raw material for making polyester) business located in Pune, according to sources in the stock market.
Following the news, on Tuesday the stock of the company went up Rs 19.25, or 3.89 per cent, compared to previous day’s close. The last trading price was Rs 513.50.
Stock market sources pointed out that the company wants to sell the division has it has been making losses. For the previous financial year (FY 2010), the division made losses (Ebit-level) of Rs 68 crore on revenues of Rs 818 crore.
The revenues for Bombay Dyeing and Manufacturing for the previous financial year were Rs 1,674 crore and profit after tax stood at Rs 18.42 crore.
The division, located at Pune with a manufacturing plant, was started around two years back and has an estimated debt of Rs 600-700 crore.
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