The stock of this real estate company has more than doubled in 17 trading days
Shares of DB Realty were stuck in the upper band of the 5% circuit for a fifth straight day at Rs 109.50 on BSE on Friday amid heavy volumes. By comparison, the S&P BSE Sensex was down 1.3% at 59,181 points at 1:10 p.m.
A total of 10.86 million shares, representing 3.8% of the real estate company’s total capital, had changed hands up to the time of writing. Additionally, there were pending buy orders for 1.66 million shares on the NSE and BSE, according to data from the exchange.
Over the past week, the stock has risen 27%, after media reports suggested that Adani Realty was in advanced talks for a merger with Mumbai-based DB Realty.
After its merger with Adani Realty, DB Realty, which is a listed company, will be renamed Adani Realty. Adani could inject more funds into DB Realty, which would make a new equity issue to the new investor, The Hindu Business Line announced on September 11.
Meanwhile, since August 23, i.e. in 17 trading days, the market price of DB Realty has appreciated by 106% from a level of Rs 53.10 on BSE. The stock had reached a 52-week high at 133.85 rupees on February 14, 2022 and a 52-week low at 25.10 rupees on September 21, 2021, according to exchange data.
DB Realty is primarily engaged in construction, real estate development and other related activities. The company is also engaged in redevelopment projects/slum upgrading projects in Mumbai and its people.
In FY 2021-22, DB Realty issued convertible warrants to developer and investors (non-developers) to raise capital of approximately Rs 1,544 crore upon full conversion of warrants into shares . Non-sponsored investors included Rakesh Jhunjhunwala’s Rare Investments, Rekha Jhunjhunwala, Lotus Family Trust, KIFS Dealers, Aditya Chandak and Abhay Chandak.
The main objective of the fundraising exercise was to reduce the debt, to meet the financing needs of its various projects of the company/its subsidiaries/joint ventures (JV) or partner companies (in which the Company is a partner ), to meet working capital needs, to strengthen the financial position and for general business purposes.
DB Realty, in its FY22 annual report, stated that the company continues to seek strategic investments / joint ventures / combinations for various projects with various other real estate developers. The company is looking to monetize its vast land pool and plans to follow the strategic JV/Joint Development path for its ongoing/upcoming projects in the near future.