DB Realty on Monday announced that it has raised funds to the tune of approximately Rs 1544 crore by way of preferential issues of 25,75,00,000 convertible warrants, with an aim to augment capital of the company and to reduce consolidated debt. All convertible warrants have been converted into equity shares in compliance with SEBI Regulations, it said.
“To augment the capital of the company and to reduce consolidated debt, DB Realty Limited raised funds to the tune of approx. Rs 1,544 crore by way of Preferential Issue of 25,75,00,000 Convertible Warrants to Promoter Group / Non Promoter (Investors) in two phases/rounds in the month of February and March, 2022 in compliance with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018,” it said in a regulatory filing.
Apart from Promoter Group viz. Goenka Family Trust and SB Fortune Realty Pvt Ltd, Pinnacle Investments, Rekha Jhunjhunwala, and RARE Investments were allotted 17.94 per cent, 2 per cent and 2 per cent of the equity shares of the company, respectively. Abhay Chandak and Aditya Chandak were also allotted 2 per cent and 2 per cent of the equity shares each.
DB Realty has said that the company has utilised / shall utilise the funds raised through issue of warrants convertible into equity shares on preferential basis leading to reduction of debt of Rs 1404 crore and further investments/acquisition of new assets and to meet various requirements of its ongoing projects and working capital of the Company.
In the last one year, DB Realty has entered into partnership/joint venture/arrangements with large real estate developers such as Adani Good Homes Private Limited, Godrej Residency Private Limited, Prestige Group entities
The company also said that it is focused to be debt free in the near term and is continuously exploring avenues to partner with established large real estate developers in order to monetize its significant real estate holdings in excess of 600 acres.