Shares of DB Realty Ltd hit upper circuit level by rising about 5% to ₹104 apiece on the BSE in Thursday’s trading session. The scrip was locked in upper circuit level for the third straight session. The multibagger stock has rallied more than 115% in 2022 (year-to-date or YTD) so far, whereas it has skyrocketed about 334% in a year’s period.
Last month, the Mumbai-based realty firm had announced plans to raise ₹1,575 crore through issue of warrants in multiple tranches to the promoter group and other investors, as part of its plan to become debt free.
“Pursuant to the infusion of funds, the company on a stand alone basis is expected to be debt free on 31st March, 2022. The company believes that it is going to play a pivotal role in Mumbai real estate with a portfolio of more than 100 million sq ft of prime real estate in Mumbai Metropolitan Region,” the company had said in an exchange filing.
Post-conversion of warrants into equity shares, the company said the promoters will hold 54.08% stake in the company, Pinnacle Investments 17.97% and these six new investors together 9.98%. The funds raised through the warrants would be utilised primarily to repay debt and augment long term capital requirement of the company.
The company issued warrants to non-promoter investors on preferential basis which included ace investor Rakesh Jhunjhunwala’s wife Rekha Jhunjhunwala through RARE Investments. Other non-promoter investors also included Lotus Family Trust represented by its Trustee namely Barclays Wealth Trustees (India) Private Limited, KIFS Dealers, among others.
Founded in 2007, DB Realty Limited is a leading real estate developer in India, involved in residential, commercial and gated community developments.
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