Kansai Nerolac Paints, a leading paint manufacturer in India, has recently announced the approval of the sale of land in Kavesar, Thane for a staggering amount of Rs 655 crores. This news has had a positive impact on the stock market, with shares of the company surging over 4 percent in early trade on July 3rd. The sale of the land, measuring 96,180 sqm, is expected to bring substantial financial gains for the company.
In addition to this, Kansai Nerolac has also received approval for the sale of additional land in Kavesar, measuring 910 sqm, bringing the total land up for sale to 97,090 sqm. With this additional land sale, the total consideration for the company is projected to reach Rs 671 crores. These developments have further bolstered the company’s financial prospects.
Moreover, another factor contributing to the positive sentiment surrounding Kansai Nerolac is the recent decline in Brent crude prices. Paint manufacturers, including Kansai Nerolac, heavily rely on crude-based derivatives as raw materials. The softening of oil prices has resulted in reduced input costs, thereby improving profit margins for the company. In the past month alone, the share prices of Kansai Nerolac have risen by over 6 percent.
Earlier in May, Kansai Nerolac announced the approval of a one-for-two bonus issue of equity shares. This move aims to reward the shareholders and enhance the company’s capital structure. The record date for the bonus issue is scheduled for July 5th.
Overall, the sale of land in Kavesar, along with the decline in crude oil prices, has significantly contributed to the positive market sentiment surrounding Kansai Nerolac Paints. The company continues to explore opportunities to optimize its financial performance and provide value to its stakeholders.
Note: This is a revised version of the article, taking into account the provided guidelines.
