Borosil Glass Sells 18 Acre Land In Andheri For Rs 830 Cr

Borosil Glass Works has sold 18 acre land in Marol, Andheri (East) to Neepa Real Estate for Rs.830 crore. The deal translates into Rs 46 crore per acre.

Borosil Glass will utilise the fund to expand its operations and retire its debt which stands at around Rs.44 Cr as on March 2010.

The deal consideration is nearly two-and-a-half times Borosil's market capitalisation of Rs.309 crore at Friday's closing price of Borosil at Rs.779.

Ambit Corporate Finance acted as the exclusive financial advisor to Borosil on the deal, while Khaitan & Co and Kanga & Co were the legal advisors.

Transaction Reference: ET

Borosil is engaged in the manufacturing of sheet glass, laboratory glassware and microwavable kitchenware. Its main manufacturing operations are now located in Bharuch in Gujarat.

The Marol area is witnessing rapid expansion driven by infrastructure expansion - on-going development of the Mass Rapid Transit System, Sahar elevated road and the Jogeshwari-Vikhroli Link Road.

This deal is higher than two major deals in suburban Mumbai this year - Sheth Developers’ acquisition of 14 acre from GTC in Vile Parle for Rs 591 crore in February and Wadhwa Group’s purchase of 18.18 acre in Ghatkopar for Rs.571 Cr from Hindustan Composites Ltd.

However, this deal of Borosil is far behind Lodha Developers’ acquisition of land in the central Mumbai suburb of Wadala for Rs.4,050 crore, the biggest-ever land deal in the city and this months Indiabulls Infra Estate Limited Rs.1,505 Cr for the 8.3-acre Bharat Textile Mills in Worli from National Textile Corporation (NTC).

This month, Indiabulls also won the adjoining Podar Mills for Rs.474 crore, at almost double the reserve price of Rs 250 crore.

Mafatlal Industries has also put its closed textiles mill in central Mumbai up for sale to cash in the rapid demand recovery in the city’s realty market.

The proposed sale of seven acres, or roughly 28,000 square meters, of mill land might earn the ailing company at least Rs 1,000 crore, said a real estate expert. Mafatlal will give an equal amount of land to the adjoining Byculla zoo, officially known as Veer Jijamata Udyan, he added.
SOme other real estate deals in the city this year are ICICI Lombard General Insurance Company Limited acquisition of Delta Plaza (land and building) from Delta Corp Limited for Rs.250 Cr, HDIL acquired a 11-acre land at Mahul in Mumbai for Rs.150 Cr, while Sunteck Realty bought a 6-acre land in Goregaon, Mumbai for Rs 150 Cr.

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