Brigade Enterprises surged 12.44% to Rs 151.90 at 11:40 IST on BSE after the subsidiary, Brigade Properties' board approved the acquisition of the property situated at Perungudi on OMR, Chennai from Kansai Nerolac Paints for Rs 550 crore.
The separate announcements were made by both the companies after market hours yesterday, 29 June 2015.
Shares of Kansai Nerolac Paints rose 1.98% to Rs 216.15.
Meanwhile, the BSE Sensex was up 16.32 points, or 0.06%, to 27,661.47.
On BSE, so far 97,604 shares were traded in the counter, compared with an average volume of 13,514 shares in the past one quarter.
The stock hit a high of Rs 160 and a low of Rs 141.10 so far during the day. The stock hit a 52-week high of Rs 179.60 on 2 February 2015. The stock hit a 52-week low of Rs 115 on 9 July 2014.
The stock had underperformed the market over the past one month till 29 June 2015, falling 6.7% compared with 0.66% fall in the Sensex. The scrip had also underperformed the market in past one quarter, declining 2.53% as against Sensex's 0.68% gain.
The mid-cap stock has an equity capital of Rs 112.75 crore. Face value per share is Rs 10.
Brigade Enterprises (BEL) said that the board of directors of Brigade Properties, subsidiary of Brigade Enterprises, approved the acquisition of the property admeasuring 15 acres 86 cents situated at Perungudi on OMR, Chennai from Kansai Nerolac Paints for a consideration of Rs 550 crore subject to legal due diligence. The acquisition of property would be done either directly by Brigade Properties or through its nominee or through a special purpose vehicle wherein Brigade Enterprises or its nominees and GIC Singapore through one of its affiliates would be the shareholders, Brigade Enterprises said. Brigade Properties has entered into a term sheet yesterday, 29 June 2015, with Kansai Nerloac Paints relating to the same, Brigade Enterprises added.
Meanwhile, Kansai Nerolac Paints said that its board of directors yesterday, 29 June 2015, approved the sale of the company's land admeasuring 15.86 acres (15 acres 86 cents) at Perungudi, Chennai to Brigade Properties or its nominees/ another special purpose vehicle (SPV) formed by Brigade Group and GIC Singapore (hereinafter referred as the Purchaser) for a sum of Rs 550 crore. The sale and the sale proceeds is subject to due diligence by the Purchaser and such other procedures as may be necessary in regard to acquisition of the land by the Purchaser, Kansai Nerolac Paints said.
Brigade Enterprises' net profit declined 39.6% to Rs 29.74 crore on 22.1% decline in total income to Rs 306.96 crore in Q4 March 2015 over Q4 March 2014.
Brigade Enterprises (BEL) is Brigade Group's flagship company. Brigade Group was established in 1986, with property development as its main focus.
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