McLeod Russel is having some volatile run in the opening bell session! The stock opened higher at Rs.135.20 but soon slipped to a new 52-week low at Rs.131.80. From there is bounced back into the green and is now 2.5% up at Rs.137.80.
The stock is in the limelight following its announcement that it has signed an MoU with Kolkatta based MK Shah Exports for proposed sale of 8 tea estates in Assam for a consideration of Rs.331 crore. This follows the Board’s decision last month to work on selling these tea estates.
These tea estates have contributed 12% to the turnover of the company for FY18 at Rs.193 crore. The combined grant area at these eight estates is 9,350 hectares and the areas under tea is 5,700 hectares. The combined workforce of these gardens is 11,000 workers.
The company is exploring sale of other estates with other buyers too.
The sale of tea estates is a move to pare down its debt of Rs.1000 crore; its aim is to cut down debt by Rs.500-600 crore in the current fiscal.