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DB Realty seeks shareholders nod to raise up to Rs 563 crore via warrants, Real Estate News, Realty Beat

DB Realty seeks shareholders nod to raise up to Rs 563 crore via warrants, Real Estate News, ET RealEstate
NEW DELHI: Mumbai-based DB Realty Ltd has sought shareholders’ approval for its proposal to raise Rs 563 crore by issuing warrants to promoters and investors. In a regulatory filing, the company informed that an extraordinary general meeting (EGM) has been called on February 2 to consider this proposal.

The Board of Directors, in its meeting held on January 4, approved the proposal for raising funds by way of issuance and allotment of warrants up to 13.05 crore.

The warrants are convertible into an equal number of equity shares on a preferential basis to members of promoters/ promoter groups and non-promoter investors.

As per the EGM notice to the shareholders, the price of each equity warrant is Rs 43.15, which will be converted into one equity share of Rs 10 each at a premium of Rs 33.15.

The company proposes to raise up to Rs 563.10 crore through the issue of warrants. The amount will be used to reduce debt, fund its various projects, meet working capital requirements, strengthen the financial position and for general corporate purposes.

Out of the total warrants, the company proposes to issue 4,87,50,000 warrants each to Goenka Family Trust and SB Fortune Realty, both part of the promoters group.

It also proposes to issue 3.3 crore warrants to Pinnacle Investments.

Razack Family Trust holds 60 per cent and Venkata Narayana Konanki 40 per cent in partnership firm Pinnacle Investments, the notice said.

The partnership firm is represented through its managing partner – Razack Family Trust through its Trustee Irfan Razack, it added.

Irfan Razack is the chairman of Bengaluru-based realty firm Prestige Estates Projects Ltd.

Prestige Group and DB Realty have tied up to develop a few projects in Delhi-NCR and Mumbai Metropolitan Region (MMR) markets.


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