Land deal sends Brigade Ent, Kansai Nerolac shares soaring by up to 18.5%

Shares of Brigade Enterprises and Kansai Nerolac Paints rose sharply by up to 18.5% on Tuesday following a land deal in Chennai for Rs 550 crore. Brigade Enterprises' scrip soared 18.43% to Rs 160 on BSE.

Kansai Nerolac Paints also gained 7.1 per cent to Rs 227.Industrial paints maker Kansai Nerolac yesterday said it has entered into an agreement with realty firm Brigade Properties to sell its land in Chennai for Rs 550 crore.

"The Board of Directors of the company has approved on June 29, 2015, the sale of the company's land admeasuring 15.86 acres at Perungudi, Chennai, to Brigade Properties Pvt Ltd or its nominees/another special purpose vehicle (SPV) formed by Brigade Group and GIC Singapore for a sum of Rs 550 crore," Kansai Nerolac had said in a BSE filing. 

Brigade Properties is a 51:49 joint venture between Bangalore-based realty company Brigade Enterprises and GIC of Singapore. 

It further said the sale is subject to due diligence by the purchaser and such other procedures as may be necessary with regard to acquisition of the land.