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D B Realty raises up to Rs 1,544 crore through convertible warrants

The funds were raised through the issue to the promoter group and investors in two phases in February and March, 2022

Housing market, Homes, Real estate, Realty

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BS Web Team New Delhi

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Real estate developer D B Realty Limited, on Monday, announced that the firm has raised up to Rs 1,544 crore through the preferential issue of convertible warrants. All convertible warrants have been converted into equity shares in compliance with SEBI Regulations, D B Realty said.

The company said in a release that the funds have been raised "to augment the capital of the company and to reduce consolidated debt." The funds were raised through the issue to the promoter group and investors in two phases in February and March, 2022.

Pinnacle Investments, Rekha Jhunjhunwala, and RARE Investments were allotted 17.94 per cent, 2 per cent and 2 per cent of the equity shares of the company, respectively. Abhay Chandak and Aditya Chandak were also allotted 2 per cent and 2 per cent of the equity shares each.

D B Realty said," The company has utilised / shall utilise the funds raised through the issue of warrants convertible into equity shares on a preferential basis leading to a reduction of debt of Rs 1,404 crore (including the release of contingent liabilities) and further investments/acquisition of new assets and to meet various requirements of its ongoing projects and working capital of the company."

In the last year, D B Realty has entered into partnerships with large real estate developers such as Adani Good Homes Private Limited, Godrej Residency Private Limited, and Prestige Group entities.

D B Realty also said that the company is focused on being debt-free in the near term. It is exploring avenues to partner with established large real estate developers to monetise its real estate holdings in excess of 600 acres.

In July, the National Company Law Appellate Tribunal (NCLAT) stayed a bankruptcy court order to admit an insolvency resolution plea against D B Realty.

On August 17, Authum Investment and Infrastructure Ltd picked up a 1.9 per cent stake in real estate developer D B Realty for Rs 100 crore through open market transactions.

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First Published: Sep 18 2023 | 2:09 PM IST

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