D B Realty Raises INR 1544 Crore Through Convertible Warrants As per the company, all convertible warrants have been converted into equity shares in compliance with SEBI Regulations
By Teena Jose
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Real estate developer D B Realty Limited, on Monday, announced that the firm has raised up to INR 1,544 crore through the preferential issue of convertible warrants. As per the company, all convertible warrants have been converted into equity shares in compliance with SEBI Regulations.
According to an official release, the fund raised will be used 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.
"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 INR 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," said D B Realty in a statement.
Apart from Promoter Group viz. Goenka Family Trust and SB Fortune Realty Pvt Ltd, Pinnacle Investments, Rekha Jhunjhunwala, and RARE Investments were allotted 17.94%, 2% and 2% of the equity shares of the company, respectively. Abhay Chandak and Aditya Chandak were also allotted 2% and 2% of the equity shares each.
Furthermore, the company is focused to be debt free in the near term and is continuously exploring avenues to partner with established large real estate developers in order to monetize its significant real estate holdings in excess of 600 acres.
On August 17, Authum Investment and Infrastructure Ltd reportedly picked up a 1.9% stake in real estate developer D B Realty for INR 100 crore through open market transactions.
