NEW DELHI: The promoter group has sold 1.46 crore shares of D B Realty reflecting a 2.91% stake and have raised Rs 301 crore by sale of the said shares, the company said in a BSE filing.
A substantial portion of the proceeds from the sale of the said shares (net of tax) has been infused back by the promoters into the company as repayment of related party transactions and unsecured interest free loan.
The funds so infused has enabled the company to retire its entire debt and therefore the company on a standalone basis shall be debt free on a standalone basis on or before November 30, 2023, the company said in a regulatory filing.
It had a debt of Rs 1,373 crore (standalone) and Rs 3,140 crore (consolidated) as of September 30, 2021. “Since then, the company has single mindedly focused on becoming debt free and has undertaken asset monetization and joint ventures as a route to achieving this goal,” it said in a media release.
Additionally, the company also undertook a de-coupling exercise with the promoter group. It had in the past invested ~Rs.
1500 crore in various promoter group entities. As on date the company has completely exited all its investments in the promoter group companies with recovery of its entire preferential investment.
It currently has a land bank of over 600 acres. It is looking to build a large annuity portfolio and by 2028 is expected to have more than 2 million sq ft of leasable office space in Mumbai CBD under its ownership.
The management affirms its full commitment to make the company amongst the top five real estate companies in India in the next three years. The management states that no further equity is proposed to be sold by the core promoter group in the foreseeable
future and further the money infused by the core promoter group into the company shall be interest free and shall not be repaid by the company until the company has surplus liquidity in the future.
The company had executed a share purchase agreement to dispose off/sale of its 100% stake in equity and preference shares in Real Gem Buildtech (RGBPL) for a consideration of approximately Rs 231.42 crore to Kingmaker Developers (KDPL), a company of Rustomjee Group.
It had also entered into a share purchase agreement to sell its entire shareholding in equity shares & OCDs in Siddhivinayak Realties (SRPL) to Reliance Commercial Finance (RCFL) for Rs 376.18 crore. It was in order to settle part of the group liabilities given by RCFL to the company, its subsidiary – Goregaon Hotel and Realty and its associate – Bamboo Hotel & Global Centre (Delhi).
