New Delhi, Feb 4 (PTI) Shares of Godrej Properties on Friday tumbled nearly 10 per cent, a day after announcing plans to invest Rs 700 crore in D B Realty amid apprehensions over the proposed transaction.
After market hours on Friday, Godrej Properties said it has decided to cancel the plan.
“We’ve decided against going ahead post the feedback we received from various stakeholders including our minority investors,” Godrej Properties Ltd Executive Chairman Pirojsha Godrej said.
Earlier in the day, the stock tumbled 10.13 per cent to Rs 1,500 on BSE. Later, it closed 9.75 per cent down at Rs 1,506.55.
n NSE, it declined 9.65 per cent to settle at Rs 1,506.90.
Shares of DB Realty, however, jumped 4.99 per cent to settle at Rs 100.90 on the BSE.
“Majority of the sectors ended in red with realty being the biggest loser – down 2.8 per cent following Godrej Properties’ deal announcement with DB Realty which was viewed negatively by the market,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
On Thursday, Godrej Properties had announced that it would invest Rs 400 crore to acquire around 10 per cent stake in DB Realty and another Rs 300 crore to set up a joint platform for undertaking slum redevelopment projects.
As per the proposed deal, the total size of the joint platform between Godrej Properties and DB Realty was Rs 600 crore, with each party contributing Rs 300 crore.
Mumbai-based Godrej Properties Ltd (GPL), one of the leading developers in the country, had proposed to invest a total of Rs 700 crore. PTI SUM RUJ ABM ABM
