Bombay Dyeing spikes on plans to close Indonesian biz
The company has signed an agreement to shut down its loss-making subsidiary in Indonesia. The stock reacted to this development and was locked in its upper circuit limit in Tuesday's morning session.
The company's board has approved and consented the closure of its subsidiary PT Five Star Textile Indonesia (PTFS) on Monday. The expected date of completion of closure is December 31, 2019. The unit has incurred losses for many years. All financial risks arising from this subsidiary have already been provisioned for, stated the company. The company had reported an exceptional item of Rs. 18.88 crore for the half-year ended September 2018 compared to Rs. 17.12 crore in the corresponding period year ago.
Bombay Dyeing operates in three major business segments, retail textile, realty and polyester. The company's retail textile division offers linens, towels home furnishings and clothing products through multi-brand stores and across more than 350 exclusive stores. The company's realty division has two mixed use projects in Mumbai and the polyester division manufactures of 100 per cent virgin Polyester Staple Fibre & Textile grade PET Chips.
On Tuesday, Bombay Dyeing opened at Rs. 111.90 per share and at 11:19 hours, the stock was at Rs. 115.10 per share, up by Rs. 5.45 or 4.97 per cent with no sellers.