The small-cap share rose 3.4 percent to an intraday high of Rs 211.4 from its previous close on Tuesday after the company announced the promoter sold a stake and the company became debt-free.
According to the filling of D B Realty Ltd, The Promoter Group has sold 1.46 Crore shares which is a 2.91 percent stake in the Company, and has raised INR 301 Cr. A significant portion of the proceeds from the sale of shares has been used to repay related party transactions and unsecured interest-free loans.
As a result of this repayment, the company become debt-free on a standalone basis by November 30, 2023. This marks a significant turnaround for the company, which had a debt of INR 1,373 Cr (standalone) and INR 3,140 Cr (consolidated) as of September 30, 2021.
In addition, it has a large land holding of over 600 acres. Prestige Estate Projects Ltd (PEPL) and Godrej Properties Ltd (GPL) are among its notable partners. The company intends to build a large annuity portfolio and expects to own more than 2.00 million square feet of prime leasable office space in Mumbai CBD by 2028.
The company has reported its net revenue rose 570 percent year on year from Rs 10.15 crores in Q2FY23 to Rs 68.01 crores in Q2FY24. In addition, net profit rose by 58 percent year on year, from Rs 565 crores in Q2FY23 to Rs 893 crores in Q2FY24.
The company’s promoters hold a 53.8 percent stake in the company, with 2.17 percent owned by foreign institutional investors, 43.96 percent owned by the general public, and 0.04 percent owned by domestic institutional investors.
D B Realty Limited is a small-cap company with a market capitalization of Rs 10,520 crores. The share price of D B Realty Ltd has increased by 144 percent in the last six months and 125 percent in the year to date. For instance, if an investor invested Rs 1 Lakh six months ago the current value would be 2.44 lakhs.
D B Realty Limited The Company was founded in 2007, and its primary business is real estate construction, development, and other related activities. The majority of the projects are in or near Mumbai and are in various stages of planning and construction.
Written by Sriram KV
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