Notably, a considerable portion of the proceeds, after tax deductions, was reinvested by the promoters into the company as repayment of related transactions and unsecured interest-free loan, the company said in a regulatory filing today.
“The funds thus infused have enabled the company to retire its entire debt, and hence the company, stand-alone, will be debt-free stand-alone on or before November 30, 2023,” the company added.
Also Read: Rekha Jhunjhunwala portfolio: DB Realty share price hits 52-week high
The company’s journey to becoming debt free started about 3 years ago, when it had a debt of ₹1,373 crore (independent) and ₹3,140 crore (confirmed) by September 30, 2021. Since then, the company has solely focused on becoming debt-free and has undertaken monetization and joint ventures as a path to achieving this goal.
Additionally, the company said it has also undertaken a massive divestment exercise with the promoter group. Previously, the company invested ₹1,500 crore in various ad group units. As before, the company abandoned all investments in the initiative group companies, recovering all its preferred investment.
Also Read: Oberoi Realty is making the right moves to woo investors
This massive decoupling effort resulted in cash flow becoming available to the company, leading to the acquisition of a 100% stake in the Grand Hyatt Goa, a 75% stake in the Hilton Mumbai, and a 50% stake in the upcoming Marriott. Marquis Hotel & Convention Center, St. Regis, Aerocity, and Prestige Trade Center at Delhi—marking the company’s entry into the hospitality business.
Looking ahead, the company aims to build a large annuity portfolio and expects to own over 2.00 million sq ft of prime leasable office space in Mumbai CBD by 2028. DB Realty is positioned among the top listed entities in the country on an equity basis and is among the top 10 real estate listed companies based on market cap.
Also Read: Realty cos gearing up to meet FY24 launch target
In another development, the company said it received information through a post on X (formerly known as Twitter) that Dr Kirit Somaiya had filed a Public Interest Litigation in the Hon’ble Bombay High Court, in which he alleged that the former government and Mumbai Municipal Corporation has awarded four contracts to DBS Realty and the Pune-based Chordia Group of Companies to build tenements for project-affected people in Mumbai.
The company clarified, stating, “We declare that such a notice has been received by us. However, we vehemently deny all these allegations as contained in the subject matter, which are absolutely false and completely baseless.”>>
DB Realty is a real estate development company based in India. It is engaged in the development, construction and sale of residential and commercial properties. The company’s projects encompass a wide range of real estate offerings, including residential complexes, commercial spaces, and mixed-use developments.
DB Realty shares have more than doubled investors’ wealth this year, moving from ₹95 per to ₹208.50, translating into a staggering 120% rally. In contrast, Nifty Realty gained 63% during the same period.
Also Read: Sunteck Realty share price jumps over 5%; Motilal Oswal expects a 41% improvement
According to Trendlyne share data, Rekha Jhunjhunwala owns 1.99% of the company, equivalent to 10,000,000 shares as of the end of Q2FY24. The promoters of the company retain the majority stake at 53.8%, and foreign institutional investors (FIIs) hold a 2.2% stake in the company, while the general public holds a 44% stake.
At 22:30, the stock was trading with a gain of 2% at ₹208.50 each.
Disclaimer: The opinions and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
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Updated: 28 Nov 2023, 10:28 IST
(tagsTo Translate)Real estate stocks