A Mumbai-based company, Kansai Nerolac Paints Limited is India’s biggest industrial paint manufacturer and third-largest decorative painter. It is a division of the Japanese company Kansai Paint. At 15.4% of the Indian paint market as of 2015, it holds the third-largest market share.
On October 24, paint manufacturer Kansai Nerolac Paints Ltd. announced that it had successfully sold its Lower Parel, Mumbai, land parcel and the building on it for a total consideration of Rs. 726 crore.
In an exchange-listed document, the company stated: “This is in addition to our letter dated December 26, 2023, stating that the Board of Directors of the company had approved a proposal for entering into an agreement for sale with Aethon Developers Private Limited, a subsidiary of Runwal Developers Private Limited (Purchaser), for the sale of the company’s land parcel at Lower Parel together with building thereon, for a consideration of Rs. 726 crores.”
Once the necessary regulatory and procedural approvals were obtained, the sale was finalized. The land was purchased by Aethon Developers Private Ltd, a subsidiary of Runwal Developers Private Ltd, when the sale agreement was initially made public in December 2023. Kansai Nerolac Paints states that the sale is subject to the conclusion of any required processes and approvals. The business also revealed that it and the buyer had a signed Agreement for Sale.
Once the required approvals were obtained, Kansai Nerolac signed the final contracts for the lease’s assignment and transferred them to Aethon Developers. The transaction has been approved by the company’s board of directors, completing the sale process as originally outlined.
The statement asserts that after the necessary procedures and approvals for the sale were completed, “the company has today entered into definitive agreements for conveyance/assignment of the lease with the purchaser for an aggregate consideration of Rs. 726 crores, under the approval of the Board of Directors for the same.”
Kansai Nerolac Paints Ltd. stock is trading right now at Rs. 276.95 per share, and this is because of the transaction of the land sale for Rs. 726 crore to Aethon Developers.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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