DB Realty Ltd.’s shares were up by 2.99 per cent after the company reported that its  promoter group has divested 2.91 per cent stake, selling 1.46 crore shares and raising ₹301 crore. A significant portion of the proceeds has been reinvested by promoters to clear related party transactions and unsecured, interest-free loans. Three years ago, when the company had a debt of ₹1,373 crore (standalone) and ₹3,140 crore (consolidated) as of September 30, 2021, the company focused on asset monetisation and joint ventures to become debt-free.

  • Also Read: Easy Trip launches ‘Explore Bharat’ travel program, shares up

Additionally, DB Realty executed a decoupling exercise with the promoter group, fully exiting past investments in promoter group entities. This exercise freed up cash flow, enabling acquisitions like the Grand Hyatt Goa, 75 per cent stake in the Hilton Mumbai, and a 50 per cent stake in the upcoming Marriott Marquis Hotel.

The company firmly denies allegations made in a post by Dr. Kirit Somaiya regarding contracts awarded to DBS Realty and the Chordia Group, stating no notice has been received. The company clarifies that DBS Realty, awarded a tender for 4,000 PAP tenements at Chadivali, is a separate entity from DB Realty. The tender was cancelled in November 2023, and DBS Realty is challenging the cancellation.

The shares were up by 2.99 per cent to ₹210.10 at 10 am on the BSE.