Real estate developer DB Realty today said it has no stake in Etisalat DB and its promoters invested in the telecom company in individual capacities.
It further said that DB Realty will have not have any financial impact due to the exit of UAE-based Etisalat from India operations.
Yesterday, Etisalat had announced shutting of its India operations following the Supreme Court order cancelling telecom licenses allocated to Etisalat DB and others.
"DB Realty is in the business of real estate development and has no direct or indirect share holding in Etisalat DB. The promoters of DB Realty in their individual capacity invested in Etisalat DB," DB Realty said in a statement.
The Mumbai-based developer said DB Realty and Etisalat DB are separate entities.
"Etisalat’s decision to shut down the operations of its Indian joint venture, was taken independently by Etisalat UAE and this decision will have no bearing or impact on the financials of DB Realty," the statement said.
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The statement came amid over 5% fall in share price of DB Realty. It closed at Rs 84.35 on the BSE. During the day, the stock had nosedived by nearly 17% to a low of Rs 73.65. On the NSE also, the scrip closed at Rs 85.25, down 4%.
Meanwhile, Etisalat today said it has filed a lawsuit against the promoters of Swan Telecom (now Etislat DB) alleging fraud and misrepresentation.
"No suit or claim has been filed against DB Realty since it was never party to any agreements or otherwise. DB Realty was and remains an independent corporate entity managed by a professional team," DB Realty said.