Shares of DB Realty tumbled by over 6% on the bourses today, as UAE-based Etisalat decided to shut down its Indian telecom venture with DB Group, following a court order quashing its mobile license in connection with the 2G spectrum case.
After starting the day on a weak note, shares of DB Realty, part of the DB Group, further plunged by 6.18% to Rs 83.40 on the BSE by mid-day trade. Similar selling pressure dragged down the company's stock on the NSE also, where the scrip lost 5.91% to Rs 83.55.
Etisalat owns about 45% stake in Etisalat DB, a joint venture between DB Group and Etisalat.
In a late night statement yesterday, Etisalat announced its decision to shut down the Indian telecom venture.
"The decision has been taken in order to protect the interests of all stakeholders and to avoid incurring further costs at this time of rapid change and continued uncertainty in the Indian telecommunications sector," Etisalat said.
Etisalat is the second foreign telecom company to exit India after Baharain Telecom which offloaded its 42.7% stake in S-Tel.
