Nilkamal - Updates

Nilkamal Ltd has informed BSE that in a landmark transaction towards creating shareholder value, the Company alongwith Bhoomi Realty India Pvt Ltd has entered into an agreement for sale of their shares in Nilkamal Bhoomi Developers Pvt Ltd for a total consideration of Rs 180 crores to India Blue Mountains Ltd (IBML).

Nilkamal Bhoomi Developers Pvt Ltd had acquired the property effectively in April 2007 for a total consideration of Rs 38 crores. This has been a highly value accretive deal for the Company, considering that within a span of less than eight months, the Company has garnered a gain of Rs 48.45 crores for its 50.01% stake. Besides the upfront gain from the transaction, the Company can now deploy the cash inflow of Rs 76.89 crores towards funding its expansion plans in the core operations of moulded plastic furniture, material handling business and its home solutions retail venture - @home.

Mr. Sharad Parekh, the Managing Director of the Company, has referred this as a major development towards its endeavour to create shareholder value and the proceeds from sale would also give boost in scaling up the existing operations. The core operations of the Company are on a strong growth path and the gains from sale of property would further enhance the pace of growth.