DB Realty To Issue Convertible Warrants To Rare Investments, Rekha Jhunjhunwala, Others

New Delhi: DB Realty Ltd on Wednesday said that its board has approved raising of funds through the issue of 5 crore warrants convertible into an equivalent number of equity shares with a face value of Rs 10 each to non-promoter investors on a preferential basis. Non-promoter investors included Rakesh Jhunjhunwala's Rare Investments (1 crore warrants), Rekha Jhunjhunwala (1 crore warrants), Lotus Family Trust (50 lakh), KIFS Dealers (50 lakh), Aditya Chandak (1 crore) and Abhay Chandak (1 crore).

DB Realty said the convertible warrants will be in addition to 7.70 crore warrants as disclosed in the outcome of the board meeting held on February 3.

Each warrant is convertible into one share of the company and the conversion can be exercised at any time within a period of 18 months from the date of allotment, in one or more tranches, it added.

DB Realty also mentioned, "An amount equivalent to at least 25 per cent of the warrant issue price shall be payable at the time of subscription."

As per the company's December shareholding, the Jhunjhunwala family owns a 2.06 per cent stake in DB Realty.

After the announcement, the company's stock jumped as much as 5 per cent to hit the upper circuit limit of Rs 116.70.

The development comes after Godrej Properties withdrew its proposed investment of Rs 400 crore DB Realty for a 10 per cent stake and a 50-50 joint venture following backlash from investors.