Kansai Nerolac is looking bright and colourful today morning. Opening Rs.11 higher at Rs.223, the stock went up to Rs.227 and is now some Rs.8 or almost 4% higher at Rs.220. Volumes are pretty robust at 31,000 shares traded today morning compared to 21,000 shares on 2-week average volume.

The company announced yesterday after market closure that its Board has approved the sale of company’s land admeasuring 15.86 acres (15 acres 86 cents) at Perungudi, Chennai to Brigade Properties Pvt. Ltd. or its Nominees/ another Special Purpose Vehicle (SPV) formed by Brigade Group and GIC Singapore. This deal has been struck at Rs.550 crore. Touted as the biggest land deal in recent times in Chennai, it values the land at Rs 7959 per square foot.

The company has stated that it will be using the money, around Rs.350 crore, to set up a new factory in Gujarat with a capacity to manufacture 42,000 mtpa of paint.

Excluding the Chennai facility, the company currently has four more facilities across India - Jainpur (Uttar Pradesh), Bawal (Haryana), Lote, Chiplun (Maharastra) and Hosur (Tamil Nadu).