Mumbai-based Developer DB Realty set to raise Rs. 1, 500 Crore to repay loans

DB Realty, leading real estate developer based in Mumbai will probably raise up to Rs. 1, 500 crore via a QIP-Qualified institutional placement at Rs. 258 per share with face value of Rs. 10. According to the sources subjected to this matter, the realty firm is set to utilize the QIP proceeds for developing business & repaying the loans.

Whereas the company’s stock hardly holds the insititutional shareholders such as late Rakesh Jhunjunwala’s family acquires a 4.98 percent stake in the company. In a base size of the QIP will possibly be Rs. 1,000 crore with a greenshoe option to upraise an added capital of Rs. 500 crore. The total equity dilution of the company will be expected up to 10.4 percent.

During a stock exchange filing, DB Realty states that its board authority permitted the floor price of Rs. 270.87 for the QIP and that the board will approve the issue price after March 13.

On this regard, the company said, "We wish to inform you that a meeting of the Board/ Committee is scheduled to be held on or after Wednesday, March 13, 2024, inter alia, to consider and approve the Issue price, including a discount as permitted under the SEBI ICDR Regulations”.

In FY24, the company sold its stake in two joint ventures with Bengaluru-based developer Prestige Estates Projects. Prestige bought DB’s stake in the two joint ventures for Rs 1,176.5 crore.

Recently, the company sold its stake in two ventures with prominent Bengaluru based real estate developer Prestige Estates Projects and Prestige group purchased the DB’s stake in two joint ventures for Rs. 176.5 crore.