Shares of DB Realty Ltd. rose over 3% after it became net debt free on a standalone basis.
The promoter group sold 1.46 crore shares reflecting a 2.91% stake in the company to raise Rs 301 crore, according to an exchange filing. A substantial portion of the proceeds from the sale of the said shares was infused back by the promoters into the company for repayment of related party transactions and unsecured interest free loan, it said.
"The funds so infused has enabled the company to retire its entire debt and therefore it shall be debt free on a standalone basis on or before Nov. 30, 2023," the filing said.
Additionally, former BJP MP, Kirit Somaiya tweeted that he has filed a public interest litigation in the Bombay High Court wherein he claimed that the erstwhile government and Mumbai Municipal Corp. awarded four contracts to DBS Realty and the Pune-based Chordia Group of Companies, to construct tenements for project affected people in Mumbai.
I filed Petition at Mumbai Highcourt
November 24, 2023
PIL (L) No 32725/2023
against Thackeray Sarkar & BMC ₹20,000 Crores PAP Scam
BMC gave illegal FREE Gifts of 5.4 FSI, Exemptions from 11 type BMC charges to DB Realty & Choradia Group in name of 35000 Tenement for Project Affected People pic.twitter.com/YUeRRESAT3DBS Realty, is a partnership firm in which the DB Realty Ltd. has a minority one-third partnership share with the rest owned by other partners. It was awarded one such tender for construction of 4,000 PAP tenements at Chadivali.
However, the award of the tender to DBS Realty was cancelled by the corporation in November 2023 and the challenge to such cancellation by DBS Realty is in process, the company said in its exchange filing denying all allegations as contained in the post.
Shares of the company rose as much as 3.42% to Rs 211.40 apiece, the highest level since Nov. 24. It was trading 1.27% higher at Rs 207 apiece as of 9:54 a.m., compared to a 0.13% advance in the NSE Nifty 50 Index.
It has risen 121.57% on a year-to-date basis. The total traded volume so far in the day stood at 1.8 times its 30-day average. The relative strength index was at 64. Bloomberg covers no analyst tracking the company.
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