DB Realty To Launch Rs 2,000-Crore QIP In March

On Feb. 9, the Mumbai-based real estate developer had announced a proposal for corporate restructuring, including demerger of the hospitality business, to unlock growth and value creation for all stakeholders.

On completion, equity shares of the hospitality business are proposed to be listed on the BSE and the NSE. Shareholders of the company (in proportion to their shareholding) will hold a substantial stake in the resulting company, with the balance being held by the company, it said.

The realtor had reported a profit of Rs 157 crore in the third quarter of the current financial year, compared to Rs 23.5 crore in the same period last fiscal.

In November, the promoter group sold 2.91% stake in the company to raise Rs 301 crore. The proceeds from the sale was infused back into the company.

"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 Nov. 30, 2023," the firm had said in a Nov. 28 in a BSE filing.

However, the company's debt level in the quarter ended Dec. 30, 2023, has not been released yet.

In addition to the above, the company also undertook a de-coupling exercise with the promoter group. It had in the past invested Rs 1,500 crore in various promoter group entities, and the decoupling exercise resulted in cash flow becoming available to the company, it said.

The company has land holding in excess of 600 acre and marquee partners such as Prestige Estate Projects Ltd, Godrej Properties Ltd and many other future partnerships that are work in progress.

Shares of DB Realty have surged more than 266% in the past year, compared to 22% rise in benchmark BSE Sensex during the period.