DIC India surges 20% on Mumbai land disposal plan

DIC India is locked in its upper circuit of 20% at Rs 544 on the BSE after the specialty chemicals company said its board has approved the disposal of Mumbai land.

“The board in its meeting held on Monday, June 12 approved the start of the process for the sale of land at Chandivali farm, off Saki Vihar road, Mumbai,” DIC India said in a statement.

The transaction completion is subject to the fulfillment of customary and statutory conditions precedents, if any. Appropriate announcements shall be made on deal completion, it added.

The company’s first unit to manufacture printing inks, surface coatings and allied products came up in 1947 in Calcutta, and other manufacturing units were established in Chennai (1958), Mumbai (1960), Delhi (1966) and Noida (1990) in a phased manner, to cater to the demands of the local market.

In August 2013, DIC India informed the stock exchange regarding the closure of the Mumbai unit.

The company had reported 68% year on year drop in its full year net profit at Rs 7.20 crore in FY17 against Rs 22.84 crore in FY16. Income from operations too declined sharply by 76% to Rs 169 crore from Rs 707 crore in year ago.

Till 11:46 am; around 33,000 shares changed hands on the counter and there were pending buy orders for 8,852 shares on the BSE. The stock hit a 52-week low of Rs 433 on Friday, June 9, 2017.