 "stake sale, shares, investors, investment")
Promoters of DB Realty has sold nearly 3 per cent stake in the company for Rs 301 crore and infused back a substantial amount in the real estate firm for reduction of debt.
In a regulatory filing, Mumbai-based DB Realty informed that "the Promoter Group has sold 1.46 crore shares of the company reflecting a 2.91 per cent stake in the company and have raised Rs 301 crore by sale of the said shares."
The promoter group has infused back a substantial portion of the proceeds (net of tax) into the company as repayment of related party transactions and unsecured interest free loan, it added.
"The funds so infused has enabled the company to retire its entire debt and therefore the company on a standalone basis shall be debt free on a standalone basis on or before 30th November 2023," DB Realty said.
The company said it has been reducing debt from last few years.
The company had a debt of Rs 1,373 crore (standalone) and Rs 3,140 crore (consolidated) as of September 30, 2021.
"Since then, the company has single mindedly focused on becoming debt free and has undertaken asset monetization and joint ventures as a route to achieving this goal," DB Realty said.
Moreover, DB Realty said that it also undertook a "massive de-coupling exercise with the promoter group".
The company had in the past invested around Rs 1,500 crore in various promoter group entities.
"As on date the company has completely exited all its investments in the promoter group companies with recovery of its entire preferential investment," the filing said.
This decoupling exercise resulted in cash flow becoming available to the company, helping it to acquire stakes in various hospitality projects across Mumbai, Delhi and Goa.
