DB Realty’s stock hit an upper circuit limit of 5% after touching a 52-week high. The scrip is trading at Rs 116.70 apiece Wednesday.
Billionaire investor Rakesh Jhunjhunwala and his wife and investor Rekha Jhunjhunwala are amongst the non-promoter investors who will be participating in realty firm DB Realty’s fund-raise. The real estate firm said in a filing Wednesday its board approved to raise funds through the issue of 5 crore warrants. DB Realty’s stock hit an upper circuit limit of 5% after touching a 52-week high. The scrip is trading at Rs 116.70 apiece Wednesday.
The Mumbai-based company said the issue of 5 crore warrants is in addition to the issue of 7.7 crore warrants, to its promoter group and Pinnacle Investments, which the company had announced last week. In total, there will be fund infusion of Rs 1575 crores into the company post conversions of warrants allotted and proposed to be allotted, it said.
The company will allot 1 crore warrants each to new investors i.e. Rakesh Jhunjhunwala’s venture capital firm RARE Investments, Rekha Jhunjhunwala, Abhay Chandak and Aditya Chandak respectively. KIFS Dealers and Lotus Family Trust will be allotted 50 lakh warrants in equal share. These warrants are convertible into equivalent numbers of equity shares.
Following the transaction, promoters of the company will hold 54.08% stake, Pinnacle Investments will hold 17.97%, new investors will have 9.98% stake while public shareholding will be about 18%. The Jhunjhunwala family currently holds about 2.06% stake in the company, according to shareholding filings from December.
This fundraise comes days after Godrej Properties called off the deal to invest Rs 400 crore for a 10% share in DB Realty citing stakeholders and minority investors concerns over the deal.
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