Share price of DB Realty soared 11.21 per cent to Rs 69.95 on BSE after the company informed stock exchanges that its subsidiary has decided to enter in a joint venture agreement with Vishwaroop Estates for development of a project in Bandra, Mumbai.
Shares of DB Realty opened at Rs 62.30 and hit a high and low of Rs 73.30 and Rs 62.30 during the day. Sensex closed 57.58 points down at 26,846.53.
Around 3.53 lakh shares exchanged hands on BSE on Tuesday as against an average daily volume of 76,000 shares in the past two weeks.
In a BSE filing, DB Realty said, “MIG (Bandra) Realtors & Builders, a subsidiary of DB Realty has decided to enter into a joint venture (JV) agreement with Vishwaroop Estates and Developers (Radius Group, a Sanjay Chhabria Venture) for the development of MIG CHSL Group I, Gandhi Nagar, Bandra (E), admeasuring approximately 20,149 square meters, whereunder, both parties would make investments to meet certain agreed cost lines and share the free sale area in an agreed ratio. The project will be co-branded.”
The total BUA of the project is expected to be over 2.4 million square feet (sq ft). The project land is completely vacant and piling work has commenced. All approvals required at this stage have been received and a formal launch of the project is scheduled in mid-November around Diwali. The revenue from the project on completion is expected to be in the region of Rs 3500 crore.
For the quarter ended June 2015, the company posted net loss of Rs 1.90 crore against net loss of Rs 7.23 crore in the corresponding quarter a year ago. Gross sales of the company jumped 1.45 year-on-year to Rs 62.05 crore.
DB Realty is a real estate development company that focuses on residential, commercial, retail and other projects, such as mass housing and cluster redevelopment, in and around Mumbai.